Hello- can any one advise me please? I need to prove thatb two companies are the same, or that the second is acting as agents for the first in order to get a jusge to " lift the company veil".
The first is in administration, and the new was set up to run the day-to day- business without the stigma of "in administration" . Payments to staff are bring made from the same bank account used when the company was appointed an administrator.
The second company has a charge on it to the first company, I am probably bing hopelessly naive here, and I do appologise if I have gatecrahed this forum innapropriately, but these people have, in effect, removed my future.
Thankyou
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Lifting the corporate veil is a topical and technical legal subject!
There has been a recent matrimonial law case, Petrodel Resources Ltd & Others v Prest & Others [2012] EWCA Civ 1395, which underlines the impregnability of the corporate veil where there has been no finding of impropriety or dishonesty in relation to the affairs of the company (even where the interests of justice would otherwise point to the desirability of lifting of the corporate veil) and also to the Chancery case, VTB Capital Plc v Nutritek International Corp & Others [2012] EWCA Civ 808 (court of Appeal judgment) and [2013] UKSC 5 (Supreme Court judgment), which deals extensively with issues connected with piercing the corporate veil.
It is not clear whether you are concerned with an employment law case or something else. You need the advice of a solicitor.
However it is fair to say that if a company is in administration then the administrator should be in control of the assets of that company - including its bank account.
But is the bank account to which you refer held in the name of the company which is in administration? That, to my mind, is a key question!
David
Is the new company sub contracting to the Administrator?
This might explain the staff being paid by the original company, doesn't explain how the stigma is avoided though.
Have you spoken to the Administrator?
David is our go to man on tricky legal points and has pointed out that you need legal advice rather than accounting advice, on the facts expressed.