Piercing the Corporate Veil: Powers v Greymountain Management Ltd (In Liquidation) and Others [2022] IEHC 599

• Date: 01 January 2023

154

Piercing the Corporate Veil:

Powers v Greymountain Management Ltd

(In Liquidation) and Others

[2022] IEHC 599

LUCY HEERY*

Introduction

It is a well-established principle of law that companies, by their nature, have a

separate legal personality distinct to that from their members and directors. Whilst

it has been recognised that there could be instances where the Courts would have

to disregard the principle of separate legal personality (ie, ‘liing’ or ‘piercing’ the

veil of incorporation), the Irish Courts have applied the principle assiduously and

‘eorts at liing the corporate veil have largely come from the legislature rather

than the courts’.1

In the landmark ruling in Powers v Greymountain Management Ltd,2 the High

Court pierced the corporate veil in order to nd two directors and two shadow

directors personally liable for funds lost as a result of an international fraud. e

decision marks the rst time that an Irish Court has pierced the corporate veil to

hold directors personally liable in such circumstances.

is case note rst considers the legal context and factual background to the

decision. It follows with a summary and analysis of the judgment delivered by

Twomey J, before concluding with a consideration of the potential consequences of

the decision to the principle of separate legal personality in Ireland.

I. Legal Context

e doctrine of separate legal personality was established by the House of Lords

in the seminal case of Salomon v Salomon & Company Ltd.3 In his judgment, Lord

Macnaghten state d that:

* e author is a qualied solicitor working primarily in the areas of corporate disputes and

investigations. She is a graduate of UCD (BCL Law with Social Justice) and the University of

Edinburgh (LL.M.). e author would like to wholeheartedly thank the editorial team and the peer

reviewers for their assistance. Any views or opinions expressed in this article are the personal views

and opinions of the author. Kiri O’Neill is a recent BCL graduate of University College Dublin.

1 Desmond v Glackin (No 2) [1993] 3 IR 67, 128–129.

2 [2022] IEHC 599 (Powers).

3 [1897] AC 22.