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Case Study Of DHN Food Distributors Ltd

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d. DHN Food Distributors Ltd. ran a grocery business using the premises of a subsidiary company which was formed to buy a piece of land. The subsidiary company did not have a business of its own and was wholly owned by the parent company, DHN Food Distributors Ltd. Tower Hamlets London Borough Council compusory obtained the subsidiary company’s premises to buld houes causing DHN Food Distributors Ltd. needed to wind up. The subsidiary company was paid for the premises, however Tower Hamlets London Borough Council refused to pay DHN Food Distributors Ltd. for disturbance of business because it did not have ay interest on the property. The issue was whether DHN Food Distributors Ltd. could be viewed as the owner of the property and …show more content…
Hence, the veil of incorporation can be lift by the court when a grop of companes are able to be trated as partnrs. The Court of Appeal decided that DHN Food Distributors Ltd. and its subsidiary company were a single economic entity. This was because both companies had the same director and te parnt compny ows al te shres of the subsiary compny. Hence, DHN Food Distributors Ltd. was entitled to claim compensation for disturbance to the business. All in all, the court concluded that Tower Hamlets London Borough Council must pay for the compensation to DHN Food Distributors Ltd because the doctrine of separate legal personality was overridden.

e. The shareholders in Bugle Press Ltd. were Jackson, Shaw and Trelby. Out of a total of 10,000 shares, Jackson and Shaw held 4,500 shares each and the remaining of 1,000 shares were held by Trelby. Jackson and Shaw wanted to purchase Trelby’s shares but Trelby refused to sell. Hence, Jackson and Shaw incorporated a company called Jackson & Shaw Holdings Ltd. Later, J&S Holdings Ltd offered to purchase all the shares in Bugle Press Ltd. Jackson and Shaw accepted the offer but Trelby declined it. J&S Holdings Ltd. then compulsorily took over Bugle Press Ltd. and force Trelby to sell his shares by exercising its …show more content…
The plaintiffs operated the Golden Million Cabaret and Night Club in Red Rose Restaurant. Red Rose Restaurant Sdn. Bhd. was whole owd ad control by Hotel Berjaya Sdn. Bhd., which owned Hotel Shangrila where te restaurnt ws stuated. A dispute between the plaintiffs and Red Rose Restaurant arose concerning about te renwl of plaintff licese to mange te nght clb. This dispute caused the plaintiffs to apply for an interlocutory injunction from the court that restrain Red Rose Restaurant Sdn. Bhd. from disturbing the plaintiffs’ business. Three days later, the plaintiffs’ found that Red Rose Restaurant premises ware locked, in beach of te injuntion. Te plantffs thn ordered an ordr of commtal fr contmpt of cort agnst the directrs of Rd Rse Restarnt Sdn. Bhd. It was found that Hotel Berjaya Sdn. Bhd. had locked up the restaurant and not Red Rose Restaurant Sdn.

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