Lifting of corporate veil ?

CORPORATE VEIL MEANS A CURTAINS WHICH DIFFERENCIATE THE COMPANY FROM ITS DIRECTORS OR SHARE HOLDERS IT MEANS COMANY IS A SEPARATE LEGAL ENTYITY WITH PERPETUAL SUCCESSION AND LIMITED LIABILITY. BUT THERE ARE SOME CASES IN WHICH THE DIRECTORS ARE LIABLE FOR COMPANIES DEFAULT PERSONALLY , IT IS CALLED LIFTING OF CORPORATE VEIL. THE CASE ARE AS FOLLOWS: 1.Reduction of membership below statutory minimum (Section 45 of the Act) 2.Improper use of name (Section 147of the Act)

The rationale behind this is probably that the law will not allow the corporate form to be misused or for the purposes which is set out in the statute.

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 (or that it was just a façade for illegal activities) it may hold the shareholders personally liable for the company's obligations under the legal concept of lifting the corporate veil.

CORPORATE VEIL MEANS A CURTAINS WHICH DIFFERENCIATE THE COMPANY FROM ITS DIRECTORS OR SHARE HOLDERS IT MEANS COMANY IS A SEPARATE LEGAL ENTYITY WITH PERPETUAL SUCCESSION AND LIMITED LIABILITY. BUT THERE ARE SOME CASES IN WHICH THE DIRECTORS ARE LIABLE FOR COMPANIES DEFAULT PERSONALLY , IT IS CALLED LIFTING OF CORPORATE VEIL. THE CASE ARE AS FOLLOWS: 1.Reduction of membership below statutory minimum (Section 45 of the Act) 2.Improper use of name (Section 147of the Act) 3.Liability for fraudulent conduct of business (Section 542 of the Act)

Lifiting of corporate veil is a concept which says that the company has life of it's own, can own property, can sue and be sued in it's own name, has perpetual life and existence .

It is a principle that distinguishes a company as a distinct legal and artificial person separate from its owners i.e. the Shareholder or Members. It protects the from Company's liability resulting from actions of its Owners. It is a premeditated process with an intention to curtail the unfair advantage enjoyed on forming of a Company.

**LIFTING OF CORPORATE VEIL** Lifiting of corporate veil is a concept which says that the company has life of it's own, can own property, can sue and be sued in it's own name, has perpetual life and existence . The rationale behind this is probably that the law will not allow the corporate form to be misused or for the purposes which is set out in the statute. The circumstances in which the court feels that the corporate forms is being misused it will rip through the corporate veil and expose its true character and nature disregarding the Solomon principal as laid down by the house of lords. Thanks

Hiiii friend..... Lifting of corporate veil ------------------------- 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 (or that it was just a façade for illegal activities) it may hold the shareholders personally liable for the company's obligations under the legal concept of lifting the corporate veil.