Issue : Whether Tembelang liable or not for failed to remit contribution to the EPF’s fund

Principle of Law :

Incorporation of a company cats a veil over the true controllers of the company ; a veil which the law will
not usually penetrate.Howeverin certain situations,the veil may be lifted .When the veil is lifted,the
company becomes no longer a separate body.The effect of this is that the members and the officers can be
made liable on the company’s debt or liabilities.This is known as the lifting up of the corporate veil i.e.
disregarding the separate legal personality of the company.

Statutory exceptions have been enacted to lift the veil of incorporation in the following situations which
render members and officer who commit the wrong liable

Section 46 of the EPF Act 1991 , a company which fails to remit contribution to its employee’s EPF fun
commits an offence.

Under sec.46 , the directors of the company at the time legal action is taken and the directors at the time
contribution was not remitted are jointly and severally liable with the company.

Application : Based on the principle of law , Tembelang was found guilty of failing to contribute to the
EPF’s funds. He personally liable for the offense because Tembelang who was in charge with the
Employees Provident Fund (EPF) for workers but has failed to remit the contribution to the EPF’s fund.
Tembelang at the time contribution was not remitted are jointly and severally liable with the company.