- Research/Scholar Paper name – “Lifting Of Corporate Veil”
- Author: Pallavi Nayyar
- Institution: Amity Law School, Noida
- Affiliation: Centre for Study of Contemporary Legal Issues
- Date of Publication: 24/06/2021
The corporate veil is that concept that provides that the personality of the company must be treated separately from that of the shareholders. It protects shareholders from personally being held liable for companies’ debts and other obligations. As per Cambridge Dictionary corporate veil is defined as the idea that a company’s managers or shareholders are not responsible legally for the cation of the company. The shareholders may hide behind the corporate veil and are assured that their liabilities are not extending beyond the value of the shares. A company has its own personality and is a separate legal entity. This has been established in the case of Rustom Cavasjee Cooper V. Union of India by the Supreme Court of India, the court stated that the company registered under the Companies Act is a legal person and is separate and distinct from individual members. The company’s property is not the shareholder’s property.
The main purpose of this research paper is to investigate the liabilities of the Doctrine of Lifting of Corporate Veil. This research paper briefly examines the concept of the lifting of the corporate veil under the Companies Act, 1956. It also deals with the meaning of the doctrine of the corporate veil in the Indian Scenario. This paper analysis common law grounds of lifting the veil which has been frequently been proposed and the cases in which it has been lifted.