What is the test applied at common law to determine whether it is appropriate to lift the corporate veil and treat a subsidiary company as the same entity as its parent?
British Columbia, Canada
The following excerpt is from Simon Fraser University v. British Columbia (Information and Privacy Commissioner), 2009 BCSC 1481 (CanLII):
UBC submits that the test applied at common law to determine whether it is appropriate to “lift the corporate veil” and to treat a subsidiary company as the same entity as its parent is a stringent one. The law with regards to this test is summarized in International Trademarks v. Clearly Canadian Beverage Corporation & Clearly Canadian Beverage (International) Corporation (1999), 47 B.C.L.R. (2d) 193 at paragraphs 10 and 11, [1999] B.C.J. No. 117 (B.C.S.C.), Williamson J. cites several authorities establishing the test:
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