The separate legal personality norm is said to “shape the establishment of current corporate law.” Any particular case to this directive must therefore be considered as a problem for these establishments. »Say no to plagiarism. Get a tailor-made essay on “Why Violent Video Games Should Not Be Banned”? Get an original essay In general principle, corporations are recognized as legal entities separate from their liability of the entity and not from that of the shareholders, directors or officers who own it. and/or act on behalf of the entity. Therefore, the way in which the law challenges the principle of separate legal personality is through a procedure called lifting of the corporate veil. Section 9 of the Companies Act 2013 codifies that a company is a legal entity in itself. RIGHT. However, it was the landmark British case of Salomon v Salomon & Co. Ltd in 1897 that initially dealt with the issue of separate legal personality in court, as well as the guidelines and standards of the separate legal personality, and ultimately decided that the legal analogy of the Veil company should be recognized by law. The distinct identity of a company is a statutory advantage and it must be used for honest business purposes so to speak. When false and unscrupulous use is made of the legal entity, the persons concerned will not be allowed to protect themselves behind the legal personality. The court will pierce the shell of the company and apply the rule of what is called "lifting or piercing the corporate veil". The court will examine the substance of the company and will act as if there were no insulating element individuals and putting individuals or controlling persons at risk for the obligations and commitments of the company Statutory recognition of lifting of the corporate veil Companies Act, 2013 itself contains some provisions [sections 7(7), 251(1) and 339] which lift the corporate veil to achieve the real powers of activity Section 7 (7) provides penalties for incorporation of a company by providing false information Section 251 (1) ) manages the risk of false application for expulsion of a company's name from the list of companies and section 339 manages the obligation in case of false company direct throughout the liquidation Keep in mind. : This is just a sample. Get a custom document now from our expert writers. Get a personalized essay From the Salomon v. Salomon and Co. Ltd., (1897) AC 22, courts are often reluctant or, in any case, extremely cautious to lift the veil of corporate personality to see the genuine persons behind it all. Moreover, the courts found it important to ignore the distinct personality of a company in the circumstances that accompanied it..