Doctrine Of Piercing The Corporate Veil: Analysis Of Current Approach Of British Courts

Harshita Bajla, King's College London

ABSTRACT

This paper aims to examine the British courts reluctance to pierce the corporate veil in order prosecute shareholders and directors operating behind the veil. Lifting the veil would cause the abandonment of the principle of limited liability. Recognising separate legal personalities of company encourage entrepreneurial activities, curtailing this principle without a clear legal framework; gives rise to this dilemma in English company law. Yet, courts are willing to lift the vile on grounds of tortious liability and evasion principle, albeit hesitantly and in very limited circumstances.