When Corporate Veil Can Be Lifted?

"Piercing the corporate veil" refers to a situation in which courts put aside limited liability and hold a corporation's shareholders or directors personally liable for the corporation's actions or debts. Veil piercing is most common in close corporations.

When can corporate veil of a company be lifted?

The corporate veil can be lifted when a corporate entity is used in defence proceedings or as a shield to cover wrongdoings in tax matters or for a commission of tax evasion.

When can corporate veil be lifted India?

Foreign Exchange Regulation Act, 1973:-

The doctrine of lifting the veil is a device which is developed to avoid the hardships of the doctrine of corporate personality. The corporate veil is said to be lifted when the court ignores the company and concerns itself directly with the members or managers.