lifting the veil

lifting the (corporate) veil

in company law, the court's refusal to apply the normal rule that a corporation is a different legal person from its members. Instances where this has been done are:
  1. (1) where a group of companies is an economic entity; and
  2. (2) where there is illegality.

Directors who may be members are not protected by the veil in some statutory cases:

  1. (1) where the membership of the company has fallen beneath the statutory minimum;
  2. (2) where the company trades without having received the appropriate certificate from the registrar;
  3. (3) where a bill of exchange is signed by an officer of the company, which does not bear the company's full name;
  4. (4) where under the Insolvency Act 1986 the directors are personally liable for wrongful trading.
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