COMPANY LAW: Corporate personality

3 cases · March 2025 to April 2026

Case Volume by Year

2
25
1
26
2025–2026

Key Issues & Sub-Topics

Veil of incorporation — Shadow directorship — Alter ego and controlling mind — Lifting/piercing of corporate veil between company and controller — Whether de facto control over a related company's negotiations, operations and hiring decisions amounts to shadow directorship — Whether the corporate veil ought to be lifted where companies are interposed as vehicles to receive, hold or conceal proceeds of wrongdoing — Whether a shared registered address, business address and company secretary between related companies evidences a sham arrangement — Whether the formal sign-off authority of a de jure director displaces a finding of shadow directorship — Whether a passive, non-trading shareholder company can be held liable where interposed as a vehicle in the scheme — Whether failure to lodge financial statements under section 259 of the Companies Act 2016 supports an inference of concealment 1 Beneficial ownership of shares — Nominee shareholders — Whether shares held on trust for beneficial owner — Whether registered shareholder holds shares as nominee and trustee — Proper plaintiff rule — Whether shareholder has locus standi to bring personal claim — Whether claim constitutes derivative action requiring leave under sections 347-350 of Companies Act 2016 — Whether shareholder has direct proprietary interest in company's assets — Distinction between personal claim for breach of fiduciary duty and derivative claim for wrong to company — Whether Foss v Harbottle rule applies 1 Beneficial ownership — Nominee arrangements — Whether director could conceal beneficial ownership through nominee shareholders — Whether failure to disclose beneficial interest rendered agreements void ab initio — Whether sham companies created for fraudulent purposes — Breach of disclosure obligations under Hong Kong Companies Ordinance and Articles of Association 1

Beneficial ownership of shares — Nominee shareholders — Whether shares held on trust for beneficial owner — Whether registered shareholder holds shares as nominee and trustee — Proper plaintiff rule — Whether shareholder has locus standi to bring personal claim — Whether claim constitutes derivative action requiring leave under sections 347-350 of Companies Act 2016 — Whether shareholder has direct proprietary interest in company's assets — Distinction between personal claim for breach of fiduciary duty and derivative claim for wrong to company — Whether Foss v Harbottle rule applies 1 case

Beneficial ownership — Nominee arrangements — Whether director could conceal beneficial ownership through nominee shareholders — Whether failure to disclose beneficial interest rendered agreements void ab initio — Whether sham companies created for fraudulent purposes — Breach of disclosure obligations under Hong Kong Companies Ordinance and Articles of Association 1 case

Key Statutes

Rules of Court 2012
cited in 2 cases
Government Proceedings Ordinance 1956
cited in 1 case
Specific Relief Act 1950
cited in 1 case
cited in 1 case
cited in 1 case
cited in 1 case
cited in 1 case

Court Distribution

Key People & Firms

Cases