National Enterprises Corporation & 2 Others v Nile Bank Limited
National Enterprises Corporation & 2 Others v Nile Bank Limited (Civil Appeal 17 of 1994) [1995] UGSC 29 (21 June 1995)
The Supreme Court held that the debenture executed before the incorporation of NEC Bakery was a nullity as between the respondent and NEC Bakery, but enforceable against the first appellant, who contracted as principal for a non-existent company and received the loan proceeds. The Court affirmed the lifting of the corporate veil, finding that the first appellant owned and controlled the subsidiaries and that treating them as separate entities would defeat justice. However, the Court found that the respondent bank had no legal authority under the debenture or the Mortgage Decree 1974 to seize…
Source excerpt
- Pre Incorporation Contracts
- Lifting Corporate Veil
- Debenture Enforcement
- Remedies For Wrongful Seizure
- Corporate Group Liability