19 June

PIERCING THE CORPORATE VEIL TO ENFORCE AN ARBITRAL AWARD IN ZAMBIA

Posted by Admin

Authors: Sydney Chisenga and Francis Muzimu

19 June 2025

Arbitration has emerged as a preferred method of dispute resolution in commercial or business disputes due to its efficiency, confidentiality, and flexibility. An arbitral award being the final decision rendered by an arbitral tribunal, holds significant weight in resolving disputes. However, the enforcement of such awards often necessitates judicial intervention to ensure compliance.

One of the complex legal doctrines that occasionally surfaces during this phase of enforcement is the concept of “piercing the corporate veil.” This doctrine, traditionally rooted in corporate law, allows Courts to hold shareholders or parent companies liable for the obligations of their subsidiaries under certain circumstances. In the context of enforcement of arbitral awards, piercing the corporate veil can play a pivotal role in ensuring that justice is served, especially when a party attempts to evade liability through the corporate veil. This article explores the effect of an arbitral award and the extent to which courts can assist in its enforcement.