Behind The Corporate Curtain: Unveiling The Essence Of Lifting The Corporate Veil Beyond Facades And Legal Personas

Divya Shetty, LLB, Rizvi Law College, University of Mumbai

ABSTRACT

This article meticulously analyses the legal construct of the corporate veil, emerging upon a business's incorporation under the Companies Act of 2013 (“the Act”). Separating the corporate entity and shareholders confers an autonomous legal identity, fostering economic activities and mitigating shareholder liabilities. Exploring the historical evolution of "piercing the corporate veil," it categorizes this progression into phases. The elucidation covers statutory provisions and judicial principles related to lifting the corporate veil, addressing instances like fraud, enemy determination, economic offenses, and contempt of court. The conclusion emphasizes the enduring significance of the Salomon principle, acknowledging exceptions for accountability and navigating the delicate balance between corporate rights and individual responsibility.

Keywords: Corporate Veil, Companies Act of 2013, Lifting of Corporate Veil, Separate Legal Identity, Limited Liability.