Does the court have a duty to look behind the corporate structure and ignore it if it is being used for fraudulent purposes or as a puppet to a third party?
Prince Edward Island, Canada
The following excerpt is from Kay Aviation v. Rofe, 2000 PESCTD 80 (CanLII):
Also in Lockharts Ltd v. Excalibur Holdings Ltd., supra, Davison J. observed at p. 188 (para. 36): ... the courts have the power, indeed the duty, to look behind the corporate structure and to ignore it if it is being used for fraudulent or improper purposes or as a “puppet” to the detriment of a third party.
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