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The Australian Pilots Association ( Apa )

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Introduction
The Australian Pilots Association (APA) is seeking to establish whether they would be able to pierce the corporate veil in order for the pilots of Xpress Air Ltd (XAL) to claim their former employment entitlements from Kwik Air Ltd (KAL). In its struggle to respond to the economic downturn, KAL incorporated a wholly-owned subsidiary XAL, and its restructure resulted in 200 pilots from KAL being made redundant and re-employed by XAL at lower pay and superannuation. The APA becomes infuriated at the fact that newly employed pilots at KAL are offered the original contract with higher pay. In advising the APA in their representation, the nature of the wrongful act must be identified. Then, we should evaluate the companies’ legal identity within the corporate group and the potential existence of agency relationship between them to figure out whether the veil of incorporation can be lifted in determining the liability that exists for the parties involved.
Separate Legal Entity
In order to establish the liability of each party involved, it must first be determined whether the liable party will be KAL itself as a corporate personality or its directors. The case of Salomon v Salomon & Co Ltd has established the legal principle of a company as a separate legal entity with its own rights and responsibilities. This legal doctrine was reaffirmed in Andar Transport Pty Ltd v Brambles Ltd when Justice Kirby held that “the mere fact that the company may be owned or controlled

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