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In Jones v. Lipman, (1962) 1 W.L.R. 832, the corporate veil was lifted because:
Answer & Solution
Correct answer: B.
1. Lesson 1's discussion of lifting the corporate veil reproduces the Jones v. Lipman facts.
2. A agreed to sell land to B and, pending completion, transferred the land to a company he had incorporated with nominal capital of £100 in which he and a clerk were the only shareholders/directors.
3. The Court held that "the company was the creature of A and a mask to avoid recognition" and decreed specific performance against the company.
4. (B) describes Workmen v. Associated Rubber Industries; (C) describes Bacha Guzdar; (D) describes Vodafone — different cases on the lifting doctrine.
_Source: ICSI CS Executive Paper 2 (Company Law) — Lesson 1: Introduction to Company Law, pp. 2-35._
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