The Liquidator Rift Valley Railways (U) Ltd v East African Rail and Handling Logistics Limited (COMPANY CAUSE NO. 17 OF 2019)
The Liquidator Rift Valley Railways (U) Ltd v East African Rail and Handling Logistics Limited (COMPANY CAUSE NO. 17 OF 2019) [2020] UGHCCD 59 (23 April 2020)
The court found that Rift Valley Railways (U) Ltd and East African Rail and Handling Logistics Limited are effectively controlled by the same shareholders, directors, and company secretary, with overlapping bank signatories and operational interdependence. The evidence demonstrated that the respondent was used as an associated company to potentially frustrate the claims of creditors in the liquidation of Rift Valley Railways (U) Ltd. Applying section 108 of the Insolvency Act and established principles on veil piercing, the court held that it is just and equitable to lift the corporate veil o…
Source excerpt
- Corporate Veil Piercing
- Insolvency Proceedings
- Associated Companies Liability
- Liquidation Claims