Even the basis of company law is the principle of separate legal personality
Even the basis of company law is the principle of separate legal personality, this principle may be abused by those who want to commit fraud, avoid contractual obligations or other reasons.
Lifting the veil is an exception to the separate legal personality, which is separates the corporation’s personality from the personalities of their shareholders or protecting them from debt of company or other obligations, and the members is not to be maintained. The judiciary in particular seems to love using unhelpful metaphors to describe this process. It also may described as ‘going behind’, ‘peeping’, ‘penetrating’, ‘piercing’ or ‘setting aside’ the veil.
The courts may disregard the principle of separate personality and look at persons behind the company which are misuse the legal entity of the corporate personality. So, the courts could apply the principle of lift the veil of incorporation in order to obtain justice.
