Piercing The Corporate Veil — Recent Developments

Two judgments handed down in the last year have caused renewed interest in the court's ability to 'pierce the veil of incorporation'. The starkly contrasting decisions given by Mr Justice Burton in Antonio Gramsci Shipping Corp v Stepanovs [2011] EWHC 333 (Comm) ("Gramsci"), and by Mr Justice Arnold in VTB Capital plc v Nutritek International Corp [2011] EWHC 3107 (Ch) ("VTB Capital") have provoked debate about the scope of the concept. This article will explore whether the parameters are being altered, or are set to be in the near future, which may have far-reaching implications for those seeking redress against parties who seek to protect themselves behind a relatively impenetrable shield of incorporation.