Daimler Co. v Continental Tyre & Rubber Co. (1916)

Company Law · Promoters — Duties and Liabilities

Facts.

An English-registered company’s shares and directors were all German. During WWI it sued to recover a debt.

Issue.

Could the court look behind the English incorporation to the enemy nationals controlling it?

Held.

Yes — the veil was lifted; the company took on enemy character, and allowing the suit would be trading with the enemy.

Why it matters.

A leading illustration that the court will pierce the veil where public interest (here, wartime policy) demands.

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