1.3 - When will Veil of Incorporation be Lifted?

Question 1

What is the first reason the court may pierce the veil in certain circumstances?

Answer 1

If the court is interpreting a statute or document and needs to treat a group as a single entity for the sake of clarity

Question 2

What is the second reason the court may pierce the veil in certain circumstances?

Answer 2

If incorporation is merely a facade (hiding something)

Question 3

What is the third reason the court may pierce the veil in certain circumstances?

Answer 3

To reveal true commercial identity (how a company is really operating - hints at fraud)

Question 4

Courts are reluctant to lift or pierce the veil. When will they only do so?

Answer 4

If they think the law is being deliberately evaded or frustrated