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What is Corporate Veil?

September 10, 2019

IT LIKE CURTAINS distinct personality of a business is a legal privilege and must be used for legitimate business activities. Only for purposes. In the case of fraudulent and unfair use of the legal entity, the persons concerned will not take refuge behind the personality of the company. The Tribunal will take action Company and apply the principle/doctrine of what is called "corporate veil lifting or stabbing”. The court will consider the company and pretend that it is not a separate entity from the Members insisted and demanded from the members of the control persons to pay the debts to the Companies.

The corporate veil lifting when a company in defense, such as tax evasion, corporate personality as a shield to cover his misdeeds.

The shareholders cannot ask for the lifting of the veil for their purposes let us know from this Example:

In which the premises of a shop have been assigned under license to the individual licensed. Premlata established a wholly owned private company and transferred the premises to that company without the consent of the government. Premlata could not remove the illegality by saying that she and her company were practically the same people.

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