International Journal of Law
International Journal of Law
International Journal of Law
Vol. 6, Issue 2 (2020)

Analysis of lifting of corporate veil

Manish Kumar Singh

From juristic point of view, a company is a legal person distinct from its members (Salomon v salomon, 1897 A.C 22) the effect of this principle is that there is fictional veil between the company and its members. But in a number of situations, the court will pierce the corporate veil or will ignore the corporate personality to reach the person behind the veil. The rationale behind the veil is probably that law will not allow the corporate form to be misuse or abused Lifting of corporate veil is an mechanism which could penetrates through the Doctrine of separate legal personality to prevent any malpractices in the company under the banner of corporate personality. It further enhances the transparency in the organization. It does ensures that none of the wrong doer could escape the liability in the name of such Doctrines. Broadly there are two types of provisions for lifting of corporate veil –Judicial pronouncements and statutory provisions. This article first introduces the readers the concept of “Veil of Incorporation” then it explains the meaning of the term lifting of corporate veil, it then points out the Judicial as well as the statutory provisions For Lifting of the Corporate Veil with the help of various case laws.
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How to cite this article:
Manish Kumar Singh. Analysis of lifting of corporate veil. International Journal of Law, Volume 6, Issue 2, 2020, Pages 109-115
International Journal of Law International Journal of Law