What is the ratio in Gilford Motor Co v Horne?

The corporate veil will be pierced where a company is incorporated as a mere device or sham to evade existing legal obligations. The court will not allow corporate personality to be used to defeat the law.

What did the court decide in Gilford Motor Co v Horne?

The Court of Appeal granted an injunction against both Horne and his company, piercing the corporate veil because the company was formed specifically to circumvent Horne's restraint of trade covenant.

Why is Gilford Motor Co v Horne important for company law?

It established a key exception to separate legal personality, showing when courts will legitimately pierce the corporate veil and remains a leading authority on using companies to evade legal obligations.

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