Merchandise Transport Limited vs. British Transport Commission

Merchandise Transport Limited vs. British Transport Commission

 

Fact of the case

A transport company wanted to obtain licences for its vehicles, but could not do so if applied in its own name. It, therefore, formed a subsidiary company, and the application for licence was made in the name of the subsidiary. The vehicles were to be transferred to the subsidiary company.



 

Judgement

The parent and the subsidiary were considered to be one commercial unit and therefore the application for licences was rejected.

 

Conclusion

The corporate veil will be lifted where companies form other companies as their subsidiaries to act as their agents.

 




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