Adams v Cape Industries plc [1990]

People suing subsidiary company
in US wanted to persuade English court to lift veil so they could
get to deeper pockets of parent company.
Court held if corporate
structure set up in such a way as to avoid future liability [to parent
comp] then this is permissible.
But to use corporate structure to avoid
pre-existing liability is fraud.
Court of Appeal also rejected
DHN Food Distributors Limited v Tower Hamlets LBC [1976]
and stated that each company in a group of companies is a
separate legal entity.