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A corporation is treated as separate legal entity distinct from its shareholders. A concept that separates shareholders personality from the personality of company called corporate veil.
The company's liabilities and are the legal liabilities of the company and the shareholders of company will not be liable for company's liabilities.Piercing of corporate veil-
It is also called the lifting of corporate veil. As company is considered separate legal entity hence act done by a company will be in the name of company and shareholders of the company will be disregarded for that acts.
This shows that there is a curtain or veil between the company and its shareholders. But in a circumstance when this is necessary to disregard the corporate personality, and look who is the person controlling the company. It is called lifting of corporate veil.
What is the corporate veil and under what circumstance can the corporate veil be pierced
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