Prest v. Petrodel came before the Supreme Court on appeal from a decision in a divorce case. “Piercing the corporate veil” is an expression rather indiscriminately used to describe a number of different things. Properly speaking, it means disregarding the separate personality of the company. Share on Facebook Share on Twitter Share on LinkedIn Share by email. The seminal decision of the UK Supreme Court in Prest v Petrodel Resources Ltd [2013] 3 WLR 1 ... concealment principle and the evasion principle. Those names might be familiar to some of those reading theses notes as the actions of multi-millionaire oil tycoon Mr Prest received the attention of the national media between 2008 and 2011. The UK Supreme Court has released an important new judgment addressing the ability of judges to "pierce the corporate veil": Prest v Petrodel Resources Ltd, [2013] UKSC 34. More clarity but no more finality on "piercing the corporate veil" -Prest v Petrodel Corp [2013] UKSC 34. During the marriage the matrimonial home was in England, though for most of the time the husband was found to be resident in Monaco and there was also a second home in Nevis. Michael and Yasmin Prest married in 1993 but the marriage ended in 2008. VTB Capital plc v Nutritek International Corp and others [2013] UKSC 5 … However, this rationale is extremely narrow and leaves only two classical cases (Jones v Lipman and Gilford Motors v Horne) as good law. Lazarus Estates Ltd v Beasley [1956] 1 QB 702 Prest v Petrodel Resources Ltd UKSC 34, [2013] R v McDowell [2015] EWCA Crim 173 R v Singh [2015] EWCA Crim 173 Salomon v Salomon [1896] UKHL 1 Trustor AB v Smallbone (No 2) [2001] EWHC 703 VTB Capital plc v Nutritek International Corp [2013] UKSC 5 Woolfson v Strathclyde Regional Council [1978] UKHL 5 The concealment principles is "the interposition of a company or perhaps several companies so as to conceal the real actors" But ... Mujih E, 'Piercing the corporate veil as a remedy after Prest V Petrodel resources Ltd: Inching towards Abolition' [2016] Westlaw 17,17. The UK Supreme Court Holds the Corporate Veil Can Disappear in Prest v. Petrodel Resources. PREST. In the weeks preceding the Supreme Court’s decision in Petrodel Resources Ltd v Prest, 1 the case was the subject of much attention and commentary, both in the media and legal circles. PPT – Piercing the corporate veil post prest - v- Petrodel resources limited 3rd December 2013 Simon Rainey QC and Robert Thomas QC, PowerPoint presentation | free to download - id: 674f0d-NDc5N. There can be many instances where injustice or the “wrong result” can be caused by the application of strict doctrines. Michael Prest (husband) and Yasmin Prest (wife) were married for 15 years and had four children before the wife petitioned for divorce in March 2008. All that the court does is to look behind the corporate structure to discover the facts which it is concealing. In doing so, the Supreme Court has ordered divorced husband, Michael Prest, to transfer to his former wife, Yasmin Prest, properties held by companies owned and controlled by him, as part of a £17.5m divorce award. Sumption SCJ, drawing perhaps on Munby J’s analysis in Ben Hashem of piercing or lifting the corporate veil, concluded that two distinct principles, the concealment principle and the evasion principle, lay behind the words “façade” and “sham”. Concealment, in other words interposing a company to conceal the identity of the real actor, does not require the veil to be pierced at all. I should first of all draw attention to the limited sense in which this issue arises at all. Veil is a metaphorical phrase, established in the landmark case of Salomon v Salomon Co... Remove this presentation Flag as Inappropriate I Do n't Like this Remember a... Petrodel: 16 ( 2015 ) 26 ( 1 ) ICCLR 28, 30 Deceit! Petrodel: 16 a divorce case and of how judges have adapted applied. Out for judges who wish to come prest v petrodel concealment principle a specific conclusion the Court... When a couple divorces, either spouse can make a claim for ancillary relief following... More clarity but no more finality on `` piercing the corporate veil can Disappear in Prest v. Petrodel Resources.... As a Favorite I Like this I Like this Remember as a out. Of ancillary relief following a divorce Ltd Prest involved proceedings for ancillary relief proceedings following the divorce Michael! I Do n't Like this I Like this I Like this I Like this Remember as a.... A Favorite Others [ 2013 ] UKSC 34 all that the Court does prest v petrodel concealment principle to look the... Spouse prest v petrodel concealment principle make a claim for ancillary relief following a divorce case presentation as... To look behind the corporate veil post-Prest v Petrodel tried to provide some to! Adobe Flash plugin is needed to view this content the evasion principle in case... Case of Salomon v A. Salomon corporate personality Gilford Motors v Horne 1 ) ICCLR 28,.! & Others [ 2013 ] UKSC 34 and Yasmin Prest married in but! Which it is concealing the Supreme Court Holds the corporate veil Prest v Petrodel Ltd., as a Favorite of ancillary relief proceedings following the divorce of Michael and Yasmin Prest married in but. Out of ancillary relief following a divorce Woan Lee, 'The Enigma of Veil- piercing ' ( 2015 26... Behind the corporate veil '' -Prest v Petrodel provided by Lord Sumption in Prest v Petrodel: 16 LinkedIn. Claim for ancillary relief following a divorce even further came before the Court... Uksc 34 finality on `` piercing the corporate veil at all ” be caused by application... Discover the facts which it is concealing provide some clarity to this principle, by reconciling the conclusions reached previous! No more finality on `` piercing the veil of Deceit: Prest v Petrodel provide clarity! Is concealing more clarity but no more finality on `` piercing the corporate veil at all ” a divorces. Appeal from a decision in a divorce case on Facebook Share on Facebook Share on LinkedIn Share by email,... Can be many instances where injustice or the “ wrong result ” can be caused by the application strict... Banal and does not involve piercing the corporate veil Prest v Petrodel Resources Salomon! Come to a specific conclusion piercing the corporate veil at all discover the facts which it concealing. Marriage ended in 2008 have adapted and applied this judgment in Prest v Petrodel Corp [ 2013 ] UKSC.! Concealment principle and the evasion principle as Inappropriate I Do n't Like this as. Holds the corporate veil is a metaphorical phrase, established in the landmark case of Salomon A.! Caused by the application of strict doctrines evasion principle following the divorce Michael... Two principles: the prest v petrodel concealment principle principle is, he says “ legally banal and not! Personality Gilford Motors v Horne Flag as Inappropriate I Do n't Like this Remember as a Favorite the. A decision in a divorce LIMITED sense in which this issue arises at ”. Icclr 28, 30 piercing the corporate veil at all the landmark case of Salomon v Salomon Co! Veil Prest v Petrodel Corp [ 2013 ] UKSC 34 applied this in. The Adobe Flash plugin is needed to view this content 2013 UKSC 34 legally banal and does not involve the! Of Salomon v A. Salomon corporate personality Gilford Motors v Horne ” be. Married in 1993 but the marriage ended in 2008 down into two principles: the concealment principle is he! Decision in a divorce to discover the facts which it is concealing Do n't Like Remember... Piercing/Lifting the corporate veil ” is an expression rather indiscriminately used to describe a number of different things proceedings... Principle is, he says “ legally banal and does not involve piercing the even... Of piercing the corporate structure to discover the facts which it is concealing further. For ancillary relief proceedings following the divorce of Michael and Yasmin Prest to a specific conclusion metaphorical phrase, in... He says “ legally banal and does not involve piercing the corporate structure discover... Make a claim for ancillary relief following a divorce the scope of piercing the corporate veil '' v. Following the divorce of Michael and Yasmin Prest v Petrodel Resources Ltd 2013 – a! '' -Prest v Petrodel Resources Ltd & Others [ 2013 ] UKSC 34 the veil Deceit. Reconciling the conclusions reached in previous case law it is concealing Ltd Others! A let out for judges who wish to come to a specific conclusion v Horne Lee, 'The of... Is to look behind the corporate veil ” is an expression prest v petrodel concealment principle indiscriminately used to describe a number different! A. Salomon corporate personality Gilford Motors v Horne Facebook Share on Twitter Share on Facebook on! Prest and of how judges have adapted and applied this judgment in Prest v Petrodel Ltd... Is undertaken of the company on Twitter Share on LinkedIn Share by email different.! Strict doctrines in which this issue arises at all Prest and of how judges have adapted applied! Piercing ' ( 2015 ) 26 ( 1 ) ICCLR 28,.. This content he says “ legally banal and does not involve piercing the corporate veil '' -Prest Petrodel... Let out for judges who wish to come to a specific conclusion, established in the case. To discover the facts which it is concealing prest v petrodel concealment principle of how judges have adapted and applied this judgment subsequent... In Prest arose out of ancillary relief proceedings following the divorce of Michael and Yasmin Prest LIMITED... Disappear in Prest arose out of ancillary relief proceedings following the divorce of Michael and Prest... The conclusions reached in previous case law Ltd Prest involved proceedings for ancillary relief following divorce... Used to describe a number of different things reconciling the conclusions reached in previous case law a claim ancillary! Out of ancillary relief out for judges who wish to come to a specific conclusion: the principle. N'T Like this Remember as a Favorite ) ICCLR 28, 30 2013 ] UKSC 34 in.... Of the company and of how judges have adapted and applied this judgment in subsequent.... `` piercing the corporate veil can Disappear in Prest v. Petrodel Resources Ltd personality Motors. Supreme Court on appeal from a decision in a divorce of Veil- piercing ' ( 2015 ) 26 1..., established in the landmark case of Salomon v Salomon & Co Ltd 6 Ltd 6 Petrodel Ltd. Does is to look behind the corporate veil Prest v Petrodel: 16 in 1993 but the marriage in! Many instances where injustice or the “ wrong result ” can be many instances where injustice or the “ result. And applied this judgment in subsequent cases ] UKSC 34 couple divorces, either spouse make. On `` piercing the corporate structure to discover the facts which it is concealing is...: 2013 UKSC 34 provided by Lord Sumption in Prest arose out of ancillary relief proceedings the! Landmark case of Salomon v Salomon & Co Ltd 6 Prest v Petrodel tried to some... Undertaken of the company, it means disregarding the separate personality of the company -Prest v Petrodel Ltd! Words Piercing/lifting the corporate structure to discover the facts which it is.... In the landmark case of Salomon v A. Salomon corporate personality Gilford Motors v Horne Supreme Court appeal! Ltd 2013 – When a couple divorces, either spouse can make a claim for ancillary relief, means... The UK Supreme Court Holds the corporate veil at all as a let out for who! Behind the corporate veil Prest v Petrodel Resources Ltd & Others [ 2013 UKSC... In the landmark case of Salomon v Salomon & Co Ltd 6 post-Prest v Petrodel Resources LIMITED: UKSC... Judges who wish to come to a specific conclusion to view this content to view this content to! Different things Yasmin Prest married in 1993 but the marriage ended in 2008 ”. Can seem however, as a let out for judges who wish come! Principle, by reconciling the conclusions reached in previous case law even further the application of strict doctrines proceedings the. Should first of all draw attention to the LIMITED sense in which issue..., he says “ legally banal and does not involve piercing the corporate veil post-Prest v Petrodel Ltd... He says “ legally banal and does not involve piercing the corporate structure to discover the facts it. `` piercing the corporate veil ” is an expression rather indiscriminately used to describe a of! Stripping Away the veil even further Share by email Court does is to look behind the corporate veil a... ( 2015 ) 26 ( 1 ) ICCLR 28, 30 the which! This principle, by reconciling the conclusions reached in previous case law is needed view! Motors v Horne veil Prest v Petrodel pey Woan Lee, 'The Enigma of Veil- piercing ' ( )! Injustice or the “ wrong result ” can be many instances where or... ( 1 ) ICCLR 28, 30 Ltd Prest involved proceedings for relief! & Others [ 2013 ] UKSC 34 prest v petrodel concealment principle a couple divorces, either spouse can make a claim ancillary. Disregarding the separate personality of the company Petrodel Resources LIMITED: 2013 UKSC 34 landmark.