Piercing The Corporate Veil May Be Easier Than You Think

How do corporate and personal liability intersect in a corporation that has only one officer, director and shareholder? In the recent Shoppers Drug Mart v. 6470360 Canada Inc. case, the Court of Appeal helped to clarify when the person behind the corporation will be found liable.

Background

In October 2005, Shoppers Drug Mart ("Shoppers") contracted with Energyshop Consulting Inc. ("Energyshop") to manage and pay its utility bills on a nationwide basis. Michael Wayne Beamish ("Beamish") negotiated the contract on behalf of Energyshop, which had not yet been incorporated. Beamish later incorporated 6470360 Canada Inc. c.o.b. as Energyshop Consulting Inc./Powerhouse Energy Management Inc. ("647").