What changed?
The Commercial Court has reaffirmed that a company's separate legal personality is not displaced without clear evidence that it was used as a facade to evade obligations or commit fraud.
Practical points
- Document whether obligations are corporate, personal or guaranteed.
- A director is not automatically liable simply because the company cannot pay.
- Creditors should secure appropriate guarantees and enforcement rights at the contracting stage.
Why it matters
Legal outcomes depend on the facts, documents and procedure in each matter. Early review can help identify risk, preserve evidence and clarify the available commercial or legal response.
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