Veil Piercing in the UK: An Evolution of Doctrinal Approaches

Abstract

This article examines the recent development of the legal doctrine of piercing the corporate veil in the UK, in light of the judgment given in Prest v Petrodel. The Prest case has significantly altered our understanding of veil piercing and has completely brought into question whether or not it may be called a “doctrine” at all. This article firstly establishes the different approaches to legal doctrine, namely one approach being generalist and broad, and another approach being methodical and exegetical. Then, by considering the case law on veil piercing before and after Prest, the article attempts to reconcile the change in law as being a change from a generalist position to one which is much more ‘coherentist’; that is, before Prest, the concept of veil piercing was arbitrary and subject to circumstance, whereas now veil piercing is subject to a strict syntax. The article also contains a brief analysis of a similar division in the doctrinal understanding of veil piercing in the US. All in all, this work intends to solidify not only the modern methodical understanding of the doctrine, but also it tries to give a feel for the way in which future veil piercing cases will be decided.