Frnds...can any one give me clarity in simple terms about the concept of Corporate Veil & Lifting of Corporate veil. I'm not understanding the meaning of this concept.
madinashabana11 (MBA) (1102 Points)
30 September 2011Frnds...can any one give me clarity in simple terms about the concept of Corporate Veil & Lifting of Corporate veil. I'm not understanding the meaning of this concept.
ashish gupta
( student)
(1922 Points)
Replied 30 September 2011
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
Amit Gupta
(Loosening Myself)
(1508 Points)
Replied 30 September 2011
| Originally posted by : ashish gupta | ||
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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 |
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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
Mukesh Kumar Singh
(CA-FINAL)
(4094 Points)
Replied 30 September 2011
| Originally posted by : Amit Gupta | ||
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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 |
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Agreed totally with this reply...................................................
madinashabana11
(MBA)
(1102 Points)
Replied 30 September 2011
Thanks u friends for ur greate cooperation ..........!!
CAclubindia
