Lifting the Corporate Veil
LIFTING THE CORPORATE VEIL OF THE COMPANY (Lifting the Veil) Originating from the case of Salomon v A Salomon & Co Ltd . The Corporate Veil notoriously known as the Salomon principle is a principle which provides that a company is essentially regarded as a legal person separate from its directors, shareholders, employees and agents. This means as a separate legal entity, a company can be sued in its own name and own assets separately from its shareholders. The corporate veil as drawn from the Salomon principle which separates the rights and duties of the company from the rights and duties of the shareholders and directors. Essentially, the corporate veil is a metaphoric veil with the company on one side of it and its directors and shareholders on the other and liability does not pass through. However, what happens in cases where the Shareholders and or directors of the company through their personal conduct use the Company to carry out s...