Lifting The Veil Of Incorporation In Kenya

The veil of incorporation limits the personal liability of corporate directors officers and employees for actions taken by the business.

Lifting the veil of incorporation in kenya. Lifting the veil of incorporation. Instead attention is given to making directors and other officers liable for corporate wrongs in specified circumstances. In those cases there was an issue of transferring contractual obligations the same way. In turn a protective veil of sorts is cast over the true controllers of the company.

Where a court determines that a company s business was not conducted in accordance with the provisions of corporate. Company law legal personality of a company corporate veil lifting of the corporate veil lifting of the corporate veil within the context of employment law in kenya circumstances in which directors shareholders of a company can be personally examined on the company s assets and the means by which such a company which was a judgment debtor intended to satisfy the decrees of. Lifting of corporate veil a legal concept that separates the personality of a corporation from the personalities of its shareholders and protects them from being liable for the company s debts and other obligations. Consequently a company s liabilities are its own not those of its shareholders.

The veil shall be lifted to prevent the avoidance of recognition by the eyes of equity. Lifting the veil occurs where the courts or law disregard the corporate personality of the company in deserving circumstances. 40 of 2011 is another law that imposes individual liability on directors and officers of a company where the corporate body commits an offence under the act. This protection is not ironclad or impenetrable.

Statutury lifting of the corporate veil. Secondly it isn t obvious from the judgment itself whether the tax experts propelled the contention with respect to lifting the corporate veil. The companys act kenya 2015 seems to ignore the possibility of lifting the corporate veil to make members of a company liable for the company s wrongs. The kenya s unclaimed financial assets act ufaa no.

In adeyemi v lan and baker nig ltd the court held that there is nothing sacrosanct about the veil of incorporation. Unclaimed financial assets act and the veil of incorporation. The principle of lifting the veil of incorporation is often used for transition tort liability from the company to its owner. Abuse of the separate legal personality separate legal personality.

Doctrine of lifting the veil received further development in the case antonio gramsci v stepanovs 2011 nyombi 2014. The incorporation of a company creates a separate person in law.