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A statutory provision is a clause in a statute providing for a particular manner. It is a provision, whether of a general or a special nature, contained in, or in any document made or issued under, any act whether of a general or special nature.
1. LIFTING OF THECORPORATE VEIL BY: Amandeep Kaur BBA Sem. 4
2. CONCEPT• In the eyes of law, a company is a legal person with a separate entity distinct from its members of shareholders. In essence it means that there is a veil or curtain separating the legal entity of the company from its members or shareholders.• When any fraudulent and dishonest use is made of the legal entity, the individuals concerned will not be allowed to take shelter behind the corporate personality. The Courts will break through the corporate shell and apply the principle of ‘lifting or piercing the corporate veil’. The Court will make the members or the controlling persons liable for debts and obligations of the company.
3. law will lift thecorporate veil: Under statutory provisions Under judicial interpretation
4. UNDER STATUTORY PROVISIONS Reduction of the number of members below statutory minimum For establishing the relationship of holding and subsidiary company For facilitating the task of an inspector to investigate th6. Lifting of Corporate VeilLifting of Corporate Veil As the company isAs the company is a separate legala separate legalentityentity , is has been provided with a, is has been provided with aveil, compared to that of individualsveil, compared to that of individualswho are managing the company.who are managing the company. But if the court feels that such veilBut if the court feels that such veilhas to been used for anyhas to been used for any wrongfulwrongfulpurposepurpose, the court lifts the corporate, the court lifts the corporateveil and makes theveil and makes the individual liableindividual liablefor such acts which they should notfor such acts which they should nothave done or doing in the name ofhave done
1. LIFTING OF THECORPORATE VEIL BY: Amandeep Kaur BBA Sem. 4
2. CONCEPT• In the eyes of law, a company is a legal person with a separate entity distinct from its members of shareholders. In essence it means that there is a veil or curtain separating the legal entity of the company from its members or shareholders.• When any fraudulent and dishonest use is made of the legal entity, the individuals concerned will not be allowed to take shelter behind the corporate personality. The Courts will break through the corporate shell and apply the principle of ‘lifting or piercing the corporate veil’. The Court will make the members or the controlling persons liable for debts and obligations of the company.
3. law will lift thecorporate veil: Under statutory provisions Under judicial interpretation
4. UNDER STATUTORY PROVISIONS Reduction of the number of members below statutory minimum For establishing the relationship of holding and subsidiary company For facilitating the task of an inspector to investigate th6. Lifting of Corporate VeilLifting of Corporate Veil As the company isAs the company is a separate legala separate legalentityentity , is has been provided with a, is has been provided with aveil, compared to that of individualsveil, compared to that of individualswho are managing the company.who are managing the company. But if the court feels that such veilBut if the court feels that such veilhas to been used for anyhas to been used for any wrongfulwrongfulpurposepurpose, the court lifts the corporate, the court lifts the corporateveil and makes theveil and makes the individual liableindividual liablefor such acts which they should notfor such acts which they should nothave done or doing in the name ofhave done