An analysis of the concept of piercing the corporate veil in company law
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Authors
Mpete, Enica
Issue Date
2024-12
Type
Dissertation
Language
en
Keywords
Common law principles , Exceptional circumstances , Fraudulent and improper conduct , Interested person , Misuse or abuse of legal personality , Piercing the corporate veil , Unjust advantage , Section 20(9) of the Companies Act, 2008 , Separate legal personality , Statutory remedy , Unconscionable abuse
Alternative Title
Abstract
This dissertation critically examines the doctrine of piercing the corporate veil, which is used by courts to remedy abuse of corporate personality. It explores the evolution, principles, and judicial application of this doctrine in South African law and English law, analysing both common law and statutory approaches.
The study identifies circumstances justifying piercing of corporate veil, such as fraud, abuse of corporate form, and evasion of legal obligations. It also highlights inconsistencies in its judicial application and analyses the impact of recent case law on the future of the doctrine of piercing the corporate veil.
The dissertation argues that inconsistent application creates legal uncertainty and calls for a more balanced approach that considers both justice and corporate accountability. To enhance clarity and fairness, it recommends legal reforms that provide clearer guidelines for courts when applying the remedy of piercing the corporate veil.