Yukong Lines Ltd v Rendsburg Investments Corporation and Others (No 2): QBD 23 Sep 1997

Repudiation by charterer: Funds were transferred by a charterer’s ‘alter ego’ to another company controlled by him with intent to defeat owner’s claim – whether ‘alter ego’ acting as undisclosed principal of charterer – whether permissible to pierce corporate veil – whether actionable conspiracy. A company creditor is owed no direct duty by a director putting his assets beyond the jurisdiction anticipating the company’s insolvency. In an unlawful means conspiracy, the unlawful act relied on must be actionable at the suit of the plaintiff: ‘As to an unlawful means conspiracy, Mr. Yamvrias undoubtedly owed a fiduciary duty to Rendsburg. Although he was not formally a director, he was a ‘shadow director’ and controlled the company’s activities.’ and ‘. . since Mr Yamvrias had effective control over Rendsburg, he would presumably have been in a position on behalf of the company to get back from himself that which he had caused to be paid for his benefit. It might in an appropriate case be within the scope of the Court’s Mareva jurisdiction to require a company, and its only effective officer, to do just that; but that has not been the subject of argument.’
Justice Toulson
Times 30-Oct-1997, [1998] 1 Lloyd’s Rep 322, [1998] 1 WLR 294, [1998] 4 All ER 82, [1998] 2 BCLC 485, [1998] BCC 870
England and Wales
Citing:
Appealed toYukong Lines of Korea v Rendsburg Investments Corporation of Liberia CA 4-Jun-1998
. .
See AlsoYukong Lines v Rendsburg Investment Corporation CA 17-Oct-1996
An order for cross examination in an application for a Mareva order is exceptional, but permissible if it is just and convenient that such an order should be made. In applying the test of whether it would be ‘just and convenient’ to make the order, . .

Cited by:
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Appeal fromYukong Lines of Korea v Rendsburg Investments Corporation of Liberia CA 4-Jun-1998
. .
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CitedBen Hashem v Ali Shayif and Another FD 22-Sep-2008
The court was asked to pierce the veil of incorporation of a company in the course of ancillary relief proceedings in a divorce. H had failed to co-operate with the court.
After a comprehensive review of all the authorities, Munby J said: ‘The . .

These lists may be incomplete.
Updated: 21 May 2021; Ref: scu.90681