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Buachaill
Buachaill, Barrister
Category: Law
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Experience:  Barrister 17 years experience
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A limited company owes me a large sum of money. It has no assets

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A limited company owes me a large sum of money. It has no assets to sue against. It's accounts are fraudulent. How do l pierce the corporate veil and sue the millionaire owner. please also recommend a UK textbook on piercing the corporate veil.
Submitted: 1 year ago.
Category: Law
Expert:  Buachaill replied 1 year ago.
1. There is no direct UK textbook which sets out the law relating to "Piercing the corporate veil". The best textbook is an EC Company series book which deals extensively with UK law entitled "Piercing the Corporate Veil" by Karen Vanderkerkhove. Here is a link to it on Amazon http://www.amazon.co.uk/Piercing-Corporate-Veil-Transnational-Approach/dp/9041125914/ref=sr_1_1?s=books&ie=UTF8&qid=1445600239&sr=1-1 . A general UK Company law textbook will contain passages on Piercing the Corporate Veil to which you can refer. An example is Gower & Davies "Modern Company law" which is the best explanatory account of UK company law.
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Expert:  Buachaill replied 1 year ago.
2. In your example, the best avenue to adopt to pierce the corporate veil is to allege fraudulent accounting and trading as this is the most direct method to impose personal liability on the millionaire owner. Fraud is the basis for almost all successful piercing the veil actions. Here the fact the company has not filed proper accounts can be used to impose liability on the millionaire owner and to divest him of the privilege of limited liability. Limited liability is not a drawbridge, which you can raise and lower when you want. If the millionaire owner has sought to take the benefit of the company's assets whilst resiling from the company's debts this is one consistent basis on which limited liablity is removed as the director or shareholder has abused the privilege of limited liability and separate personality upon which a company is based. A company is a fiction, so when the fiction of separate personality and limited liability is abused, the justifys the removal of the privilege of both limited liability and separate personality.