ABSTRACT
The notion of lifting the corporate veil might be interpreted as the company’s affiliation with its members. To put it another way, removing the corporate veil is a legal choice to treat a company’s rights and obligations as if they were the rights and liabilities of its shareholders. There are exceptions, but they are accidental denials by the legislation or the tribunals to follow logic where it is blatantly adverse to justice, convenience, or the revenue interest.
The notion of corporate veil, as well as the piercing of that veil, is known for its distinctiveness in the context of company law. However, when looking at recent legislative advancements, the major argument that has been plaguing corporate organisations is the alleged infringement of human rights as a result of the theory known as ‘penetrating the corporate privilege veil’. The dilemma then becomes whether lifting the corporate veil and merging the organisational personality with the natural personality of its members infringes on the individuals’ human rights in the arena, or if enforcing criminal responsibility on corporations by raising the corporate veil ignores the essence of corporate individuality in the first place.
Ishani, Irshita, Human Rights Violation and the Piercing of Corporate Veil (July 28, 2022).
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