Analysis Of Doctrine Of Lifting Of Corporate Veil

Srishti, BBA LLB, Christ Academy Institute of Law, Bengaluru

ABSTRACT

The incorporation of a company under corporate law establishes it as a separate legal entity distinct from its directors, shareholders, and members, a principle firmly established by the landmark case Salomon v Salomon in 1897. This separation, often referred to as the corporate veil, provides shareholders with limited liability, shielding them from personal responsibility for the company's debts. However, this protective barrier can be lifted by courts in cases of misuse, such as fraud or evasion of legal obligations, to hold shareholders accountable.

This study investigates the relevance and practical application of the corporate veil doctrine, focusing on its implementation in India and the United Kingdom. By exploring the legal foundations and judicial interpretations in both jurisdictions, the research aims to identify the circumstances under which the veil is pierced and the real actors behind corporate activities are exposed. The analysis is based on secondary data, judicial precedents, and comparative case studies.