lifting of corporate veil- an overview

1. by: Nidhi Mahajan

2.  Company is a artificial Person
 Having saparate legal entity
 Saparate from its members
 Can sue if someone is wrongful
 Can be sued if it is doing wrongful acts
Hence there is a veil in between company and
the members

3.  Company cannot act on its own
 Company is unable to undersatand What is
Right or Wrong
 of course there is some human agncy
(Members of the co.) functioning on the
behalf of the company.
 Hence for the wrongful act of the company its
members are picked and punished in other
words
 CORPORATE VEIL IS LIFTED

4. Circumstances when the corporate veil is lifted
is covered under two heads
 Statutory Provisions
 Judicial Provisions

5.  Misstatement in the prospectus
 Failure to return the application money
 Misdescription of company’s name
 For investigation regarding the ownership of
the company
 Fraudulent conduct
 Inducing persons to invest money in the
company
 Furnishing false ststement

6.  Tax Evasion
 Prevention of Fraud
 Determination of enemy character
 Ultra vires act
 Agency Companies
 Public interest
 Sham Companies
 Companies avoiding the legal obligations

7. 
Thankyou