‘Switching assets from one shadowy hand to another’: piercing the veil of company and trust

摘要

After the collapse of South Sea Company in 1720, investment in companies became unlawful. This changed with the introduction of the Joint stock Companies Act 1862. Salomon shows the sanctity of the separate personality, distinct from shareholders and directors. The Chancery and Family Divisions are willing in exceptional circumstances to pierce the corporate veil. This article considers recent cases from England and Jersey. It considers whether these principles can be applied by analogy to trusts. And it contrasts this position with the Chabra jurisdiction where courts have little compunction in piercing veils of trusts and companies, leaving trustees and beneficiaries in a state of limbo.