The document discusses the piercing of the corporate veil, which is a legal concept where a court ignores the separate legal personality of a company or corporation and treats the rights and liabilities of the company as the rights and liabilities of its shareholders. It defines a company as an artificial legal person created by law that has a separate existence from its members. The document notes that courts generally respect the principle of a company's separate legal personality but may pierce the corporate veil in situations like fraudulent trading, investigating company ownership, or misstatements in a prospectus.

1. Submitted by-
Ratnesh kr. vishwakarma
BBA IIIrd sem, (B)
Under the guidance of
Ashutosh sir
(faculty of management department)
Piercing of Corporate Veil

2. Company
“A company is an incorporated association
which is an artificial person created by law,
having a separate entity with a perpetual
succession and common seal”.
L. H. Haney

3. Characteristics of the
company
 Perpetual succession.
 Common seal.
 Limited liability.
 Transferability of shares.
 Separate legal entity.

4. Piercing of corporate veil
A company is a legal person distinct from its
member. This principle may be referred to as
“ the veil of incorporated”. The courts is
general consider themselves bound by this
principle. The effect of this principle is that
there is a fictional veil between the company
and its members. That is the company has a
corporate personality which is distinct from it
s members.

5. Situations
 Reduction of the numbers of member
of statutory limit.
 Investigating fraudulent trading.
 Investigating companies ownership.
 Misstatement of prospectus.
 Loss of revenue.