Piercing or Lifting the Corporate Veil

In today’s #FridayRead, we will briefly discuss the doctrine of Piercing or Lifting the Corporate Veil.
A company is a separate legal entity formed to regulate the operations of a business and can sue and be sued.
The case of Salomon v. Salomon establishes that a company is a legal person separate from its directors, shareholders, employees and agents which can essentially sue and be sued separately from its shareholders.
Piercing or lifting the corporate veil is a method used by the courts to disregard the corporate personality and separate the shareholders of the company and from the company in a situation where there have been fraudulent and improper conducts by the persons operating the company.
One of the cases that established this doctrine is the case of Walkovszky v. Carlton. The court held that an individual can be held liable for the acts of a corporation through the doctrine of respondeat superior.