A Corporate Veil is a legal concept that separates
the personality of a corporation from the personalities of its shareholders,
and protects them from being personally liable for the company's debts and
other obligations. This protection is not ironclad or impenetrable. Where a
court determines that a company's business was not conducted in accordance with
the provisions of corporate legislation it may hold the shareholders personally
liable for the company's obligations under the legal concept of lifting the
corporate veil.
3 Situations That Require Lifting the Corporate veil.
1. To determine the true character of the company•
2. Determination of residence for tax purposes•
3. Evasion of statutory provisions
