What is corporate veil? definition and meaning.
Piercing the corporate veil or lifting the corporate veil is a legal decision to treat the rights or duties of a corporation as the rights or liabilities of its shareholders. Usually a corporation is treated as a separate legal person, which is solely responsible for the debts it incurs and the sole beneficiary of the credit it is owed. Common law countries usually uphold this principle of.
Lifting of Corporate Veil: Indian Scenario. The doctrine of lifting the corporate veil means ignoring the corporate nature of the body of individuals incorporated as a company. A company is a juristic person, but in reality it is a group of person who are the beneficial owners of the property of the corporate body. Being an artificial person, it (company) cannot act on its own, it can act only.
Lifting the veil can be used to impose liability upon the shareholders or for other purposes, such as ascertaining appropriate jurisdiction. Whilst there is a general reluctance to lift the corporate veil, there is a body of case law where the courts have considered doing so. This article will examine the most recognised instances and will discuss some of the more recent rulings on this issue.
The title of this dissertation, Veils, Frauds and Fast Cars, reflects Thorpe LJ’s argument in Prest that failing to pierce the corporate veil to allow the transfer of family assets out of one person companies would present “an open road and a fast car to the money maker” to evade their legal obligations.8 The Supreme Court reduced that speed by confirming the retrenchment of the doctrine.
What is “piercing the corporate veil”? It has long been established that the courts can in certain circumstances disregard the separate legal personality of a company from the shareholders. This is known as piercing or lifting the corporate veil. Numerous cases have set out various legal tests for the very limited circumstances in which.
Lifting the Veil Have a look at our dissertation example about Lifting the Veil to begin writing! Company Company The overall reasoning of the Court in.
Lifting of the Corporate Veil Ankan Bose, created on 09 Feb 2017 According to the Companies Act of 2013, at the time of its incorporation itself the company is considered as a separate legal entity different from its promoters, directors, members, and employees.