Question

Circumstances under which corporate veil of the company will be lifted by the court company law llb notes

Answer 1

1. Under Judicial Interpretation:

a) Determination of Enemy Character.

b) Evasion of the Tax.

c) Fraud or improper Conduct.

d) Company used as mere cloak or sham.

e) Working as an agency.

2. Under Statutory Provisions:

a) case of Fraudulent or wrongful transaction done in the name of company.

b) Any person inserting false particulars in the documents of company.

c) Failing to maintain Accounts.

d) Commiting misappropriation or embezlment of property.