The Importance Of Respecting The Corporate Integrity Of Special Purpose Vehicles Post Enron.

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The Importance Of Respecting The Corporate Integrity Of Special Purpose Vehicles Post Enron.

Margaret Boswell is a Partner in the London office of Maples and Calder

The aftermath of the Enron scandal is not the first occasion that attempts have been made to set aside corporate structures, and it will not be the last. But leaving aside instances of outright fraud and wilful manipulation, the use of special purpose vehicles in complex financing structures is a perfectly legitimate use of a fundamental principle of corporate law.

Separate Legal Entity

That principle is that a company is, from the date of its incorporation, a separate legal entity distinct from its members and its directors. If we were in any doubt before 1897,...

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