National Enterprises Corporation & 2 Ors v Nile Bank Limited
National Enterprises Corporation & 2 Ors v Nile Bank Limited [1995] UGSC 22 (21 June 1995)
The Supreme Court held that the debenture executed before the incorporation of NEC Bakery was a nullity as between NEC Bakery and the respondent, but enforceable against the first appellant, who contracted as principal for a non-existent company and received the loan. The court affirmed the principle that a person contracting as agent for a non-existent principal may be held personally liable. The trial judge was correct in lifting the corporate veil to identify the true parties and economic entity, given the first appellant's majority control over its subsidiaries. However, the court found t…
Source excerpt
- Pre Incorporation Contracts
- Lifting Corporate Veil
- Debenture Enforcement
- Unlawful Seizure Of Property
- Special Damages
- Statutory Corporations