Lifting the Corporate Veil

What is meant by Lifting the Corporate Veil?

Asked on November 27, 2013 in Legal.
Add Comment
1 Answer(s)

In corporate law, the company is treated as a separate legal entity with no association to the owner or the manager of the company. In the case of Solomon v. Solomon it was identified that there is a veil which creates the company and separates it from its owners. Therefore after the creation of a company, the company is responsible for the work done like payment of dues, contractual obligations etc. Sometimes, in case of an illegal activity, where the owner of the company is doing illegal activities under the garb of the corporate veil then the Courts have lifted the corporate veil to hold the owner liable for the illegal activity. 

Answered on October 26, 2016.
Add Comment

Your Answer

By posting your answer, you agree to the privacy policy and terms of service.