International Journal of Accounting and Management Sciences (IJAMS)
Vol1 No.2 October 2022
DOI https://www.doi.org/10.56830/OZVW4086
Author
Farqaleet Khokhar
Abstract
The “separate legal personality” and “limited liability” are two main and fundamental
principles of corporate law. The concept of a separate legal personality of the company
originated from the case Salomon v Salomon & Co Ltd. The landmark case decided that
when a company is registered, it attains a separate legal identity. A corporate veil is a concept
that recognizes the separate corporate personality of the company from the shareholders‟
personalities. In many circumstances, it happens that the corporate personality of the
company commits fraud or any other illegal acts. It becomes impossible to believe that an
artificial personality like a company commits any illegal act or fraud. In such cases, for the
identification of the original wrongdoer, the veil of the corporation is pierced which is also
called lifting the corporate veil. To highlight the English Courts’ trends in lifting the corporate
veil, this article unearths the canons of English courts’ judgments to pinpoint the
inconsistencies in their decisions. The paper inspects the exceptions to the Saloman rule that
have been focused on and meticulously analysed in this research paper to highlight the
evolution of these recognised exceptions including “Single Economic Entity, Fraud, and
Facade, Sake of justice, and Agency.”
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