If for fraudulent and dishonest purposes the privilege of corporate veil is used, such persons can be made personally liable for the debts of the company. Even when a person uses this for concealing his own criminal activities, the court will break through the corporate shell and apply the principle of what is known as “lifting or piercing through the corporate veil."
There should be a necessary balance between the interest of the public and the corporate personality. There cannot be a single rule for the doctrine of corporate veil. Since no right is absolute, lifting of corporate veil to disregard limited liability of members should be emphasised and for this, the courts must stick to a set of statutory standards.
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