Comparison of Statutory Provisions In Support of Lifting of The Corporate Veil

Comparison of Statutory Provisions In Support of Lifting of The Corporate Veil

A company is a separate legal body/ entity which are different and separate from its promoters, directors, members, and employees. Subsequently, an artificial person is not capable of doing anything illegal or fraudulent. Hence, concept of the corporate veil, separating those parties from the corporate body, has arisen.


Sometimes a corporate personality of the company is used to commit frauds and improper or illegal acts. Subsequently, an artificial person is not capable of doing anything illegal or fraudulent; the concealment of corporate personality might have to be removed to identify the persons who are really guilty. This is termed as ‘lifting of corporate veil’.