Corporate veil

it simply means considering the company as a separate entity i.t. separate from its promoters, shareholders and directors. That is company is only responsible for its acts.

And lifting the corporate veil means just ignoring this concept of separate entity and try to identify the person who is responsible for the illegal acts of the company

Originally posted by : ashish gupta
	it simply means considering the company as a separate entity i.t. separate from its promoters, shareholders and directors. That is company is only responsible for its acts. And lifting the corporate veil means just ignoring this concept of separate entity and try to identify the person who is responsible for the illegal acts of the company

Say agar no of minimum members short of 7/2 for public or pvt co's and by lifting the corporate veil the directors knowing this contravention would be held liable for the acts done by the company if such default continous for  6 months..This could nt be possible if corporate veil ie seperate identity would hv nt been lifted..Basically this concept of seperate legal entity is ignored in the cases where the court want to see the actual ppl behind the fraud/default

Originally posted by : Amit Gupta
	Originally posted by : ashish gupta it simply means considering the company as a separate entity i.t. separate from its promoters, shareholders and directors. That is company is only responsible for its acts. And lifting the corporate veil means just ignoring this concept of separate entity and try to identify the person who is responsible for the illegal acts of the company Say agar no of minimum members short of 7/2 for public or pvt co's and by lifting the corporate veil the directors knowing this contravention would be held liable for the acts done by the company if such default continous for  6 months..This could nt be possible if corporate veil ie seperate identity would hv nt been lifted..Basically this concept of seperate legal entity is ignored in the cases where the court want to see the actual ppl behind the fraud/default

Agreed totally with this reply...................................................

Thanks u friends for ur  greate cooperation ..........!!