LIFTING THE CORPORATE VEIL
we have already studied once a company is formed andregistered as per law, it is a separate legal entity from itsmembers. Further it has been established by the judiciaryalso that a company is a quite distinct legal personalityfrom the persons who have formed it.
House of Lords has also observed it in a very famouscase namely
Solomon Vs Solomon and Company Ltd
.But there are certain exceptions to this fundamentalprinciple of separate corporate personality, where the veilis lifted or pierced and the identity of the members isrevealed. It means that where the law disregards thecorporate entity and pays regard instead to the individualmembers behind the legal facade due to certainsituations or circumstances, it is known as lifting the veilof corporate personality.