Question

Identify circumstances where the corporate veil will be ignored or lifted either at common law or under statute?

Answer 1

Piercing the corporate veil or lifting the corporate veil is a legal decision to treat the rights or duties of a corporation as the rights or liabilities of its shareholders. ... For example, English law conferred entity status on corporations long before shareholders were afforded limited liability. Disregarding the general rule a corporation is a legal entity distinct from its shareholders by regarding the company as a mere agent or puppet of a controlling shareholder or parent corporation. In some jurisdictions, the courts prefer the term piercing the corporate veil.

Common law Given that corporate personality is granted by statute, the courts have been cautious to lift the veil of incorporation and impose liability on those behind it. ... There is no common, unifying principle, which underlies the occasional decision of the courts to pierce the corporate veil.