Lifting the veil of incorporation by common law

Gilford Motor Co Ltd v Horne

In fact, Horne was one of the managing directors employed by Gilford Motor Co Ltd.
Under the employment contract stated that Horne is prohibited to solicit the
companys clients if he leaves the company. However, Horne was fired and he set up
his own company where the shareholders are his wife and one of his friends. He
claimed that the company has no contract with Gilford Motor Co Ltd therefore it is
not interdicted to compete with Gilford. Horne was sued by Gilford Motor. Court held
that Horne was using the principle of separate legal entity of forming a company to
evade his own obligation therefore the veil of incorporation has be to lifted. Horne is
considered breach of contract.

For instance,