- 1 Marks
Question
4. A situation in which the court would disregard the distinction between the personalities of a company and its members is
A. Subrogation
B. Alienation
C. Lifting the veil of incorporation
D. Disregarding the law
E. The rule in Foss vs. Habbotle
Answer
C
Explanation:
“Lifting the veil of incorporation” refers to circumstances where a court looks beyond the company as a separate legal entity to hold members personally liable, often in cases of fraud or other serious legal breaches.
- Tags: Company Law, Corporate Personality, Legal Principles, Veil of Incorporation
- Level: Level 1
- Topic: Company Law
- Series: NOV 2020
- Uploader: Dotse