What exactly is the ‘corporate veil’ and does Australian law adequately address abuses of the...

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What exactly is the ‘corporate veil’ and does Australian law adequately address abuses of the corporate form? Give specific examples and refer to relevant legislation and case law when you discuss your answer.
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The maximum word length for this essay is 1,500 words. This is a research exercise, so you are expected to go beyond the prescribed textbook by locating and critically analysingprimary and secondary sources. Also, follow corporate scandals that are reported in the media or mentioned in Parliament. Essays which do not demonstrate a research effort and/or which do not use the full allowable word limit are likely to be given lower marks; provide all your references.

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005_x9eua5o-wwqfcbo2.docx 005_7neua5o-imxrbvbm.pdf

Robert · Accepted Answer

Introduction  
 The modern context of business has turned out to be a complex structure which compress 
of the employees, members and the entities that are involved in the process of business. 
However, this scenario has also introduced the concept of veiling the errors especially in the 
corporate sector where the industry and the members of the industry are treated as different 
bodies. In fact, corporate veiling occurs when the individuals involved in the process of business 
affect and influence it and gain personal interests. When liabilities are held against them, they 
take the narrow turn and put all the liability, held thus, over the organization. The company law 
addresses the corporate veil as something which has to be prevented through adequate efforts and 
proper legislative methods. Australian company law abides by the rules of company law in order 
to protect the fair spirit of business with a view to prevent corporate veil to happen like some 
contagious disease.  
Corporate Veil and Legal Intervention  
 In the context of Australian business culture, it is important to not the concept of 
corporate veil and how it takes place. The word „veil‟ represents hiding of known and 
deliberately committed errors which lay the foundation of the theft of capital and other related 
business crimes. Usually, the process of veiling occurs in the name of merging the companies 
and thus, subsiding the real capital to be disclosed before the government. Sometimes, personal 
benefits are taken through the process of persuasion and it becomes hard for the legal authorities 
to judge whether the action of veiling is genuine or not. “A company is a separate legal entity, 
and its actions, assets, rights and liabilities are distinct from individuals who are members or 
directors. The company, and not its members, is liable for any breaches flowing from its 
contracts. The court, however, can in exceptional circumstances disregard this principle, and “lift 
the corporate veil” to hold member(s) liable. Below, we explain the purpose of the corporate veil 
and in what situations the court will look behind the business‟ separate legal personality.” (Legal 
Vision, 2017) 
 Australian legislative methods allow and accompany the global culture of allowing the 
court to put the concept of veiling to proper trial. In fact, in this context,

What exactly is the ‘corporate veil’ and does Australian law adequately address abuses of the corporate form? Give specific examples and refer to relevant legislation and case law when you discuss...

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