Samarth Parag Gosavi, BBA. LL.B. (Hons.), Symbiosis Law School, Pune
Anushka Maske, BBA. LL.B. (Hons.), Symbiosis Law School, Pune
ABSTRACT
The doctrine of veil piercing is an exception to the concept of separate legal entity of a corporation. The doctrine states that though generally the corporations are distinct legal personalities from its members, certain situations might require to ‘pierce this veil’ which differentiates between the corporation from its members. Such situations arise when corporations are merely instruments used by the members to evading taxes or committing frauds on society.
In the light of this, this article analyses the literature which shades light upon the way doctrine is applied in the foreign jurisdictions with respect to aforesaid criterion. The article further explains the Indian judiciary’s approach towards this criterion, which is established to be a little advance than developed democracies like USA and UK, despite having taken inspiration from English cases. The article also intends to endorse certain recommendations which are already expressed by scholars, in order to improve the application of doctrine even further.
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