An analysis of some of the salient legal issues arising out of the recent Price Club cases

Abstract

The Price Club cases are considered by some as being one of the biggest corporate law scandals in local history, which makes them the landmark cases they are. The judgements delivered by Mr. Justice Tonio Mallia on the 12th of October, 2007 have resulted in dire consequences for the whole Price Club corporate structure and its directors. But how did the Court come to these conclusions and what is the legal reasoning behind them? This thesis seeks to address these questions by analysing the legal principles adopted by the Court in reaching its conclusions. In order to achieve this objective there shall be an analysis of the Court reasoning which ultimately lifted the corporate veil of PCO and imposed liability on the other companies within the Price Club group of companies. Together with this it also seeks to address the application of the principle of fraudulent trading.