Peter runs a soil testing business He decides to form a company to take over the business He is the sole shareholder and sole director Peter sells his business to the company at an inflated price and

In this scenario, Peter has formed a company to take over his soil testing business. However, he has acted in a way that suggests he is treating the company as an extension of himself rather than a separate legal entity. He has inflated the price of the business and lent the company money, secured by a mortgage over property he transferred to the company.

This raises the question of whether the corporate veil should be lifted and Peter held personally liable for the company's debts.

(i) As the only secured creditor, Peter will have priority over unsecured creditors in the liquidation process. However, it is not clear whether he will get his $100,000 back. This will depend on the value of the property secured by the mortgage and any other assets the company has. If the company's assets are insufficient to cover all creditors' claims, Peter may not receive the full amount of his loan.

(ii) Peter may be able to claim workers' compensation if he meets the eligibility criteria. However, this would depend on the specific provisions of the relevant legislation and the circumstances surrounding his injury. It is not clear from the scenario whether Peter would be entitled to workers' compensation, but this would be a separate issue from the question of lifting the corporate veil.

Overall, the scenario raises concerns about Peter's conduct in relation to the company and the potential for him to be held personally liable for its debts. However, further information would be needed to determine whether lifting the corporate veil is appropriate in this case