The doctrine of reverse piercing of corporate veil: its applicability in India
| Autor: | Vijay P Singh |
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| Rok vydání: | 2021 |
| Předmět: | |
| Zdroj: | Trusts & Trustees. 27:108-117 |
| ISSN: | 1752-2110 1363-1780 |
| DOI: | 10.1093/tandt/ttaa108 |
| Popis: | Separate legal personality, independent from its member, is a peculiar characteristic of a corporation. Because of this characteristic, members and shareholders enjoy limited liability and get financial protection. However, the principle of separate legal entity is sometimes used or misused by the members of the corporations to escape their liabilities. Thus, in order to fix their liabilities and dispense justice, the court propounded the rule of ‘Lifting the Corporate Veil.’ With time, a new doctrine emerged in the USA. This new doctrine is known as the ‘Doctrine of Reverse Piercing of the Corporate Veil.’ The doctrine, though recognised by the courts in the USA, is not recognised in several jurisdictions, including India. The present article analyses the concept and relevance of this doctrine under the current economic developments in India. Further, the article discusses recent legal developments to illustrate that ‘reverse piercing’ is already in effect in India, and provide suggestions to make the doctrine of ‘reverse piercing’ more productive and proactive. |
| Databáze: | OpenAIRE |
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