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Lifting of corporate veil ?

Avatar 37a3bd7bc7328f0ead2c0f6f635dddf60615e676e6b4ddf964144012e529de45 Uma asked about 3 years ago

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8 Answers
Avatar 37a3bd7bc7328f0ead2c0f6f635dddf60615e676e6b4ddf964144012e529de45 Ashika answered over 2 years ago

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)

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Avatar 37a3bd7bc7328f0ead2c0f6f635dddf60615e676e6b4ddf964144012e529de45 narahari answered almost 3 years ago

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.

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Avatar 37a3bd7bc7328f0ead2c0f6f635dddf60615e676e6b4ddf964144012e529de45 CA Sandeep Bohra answered almost 3 years ago

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.

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Avatar 37a3bd7bc7328f0ead2c0f6f635dddf60615e676e6b4ddf964144012e529de45 DEEPAK SINGHAL answered about 3 years ago

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)

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Avatar 37a3bd7bc7328f0ead2c0f6f635dddf60615e676e6b4ddf964144012e529de45 veeru answered about 3 years ago

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 .

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Data?1494421636 Deep answered about 3 years ago

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.

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Avatar 37a3bd7bc7328f0ead2c0f6f635dddf60615e676e6b4ddf964144012e529de45 lochan answered about 3 years ago

**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

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Open uri20170510 32134 tcchcu?1494421832 Jitendra Suthar answered about 3 years ago

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.

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