ABSTRACT
Of course, the veil of incorporation may be lifted in the exceptional circumstances discussed in this Chapter between a parent company and a subsidiary in the same way as it can between an individual and a company but, prima facie, the Salomon doctrine applies as much to companies within a corporate group. There is concern, however, that the application of the Salomon principle to the corporate group presents greater potential for harm because of the greater economic impact it may have. Nowhere is this concern better expressed than by Templeman J, in Re Southard and Co Ltd:87
As a result of this concern, it is perhaps natural to enquire as to whether the courts have attempted to develop any principle of lifting the veil specifically directed to the corporate group. The answer is yes, but not particularly effectively.
