ABSTRACT
The doctrine of separate corporate personality was set out in the House of Lords case Salomon v Salomon Co. Ltd in 1897. It specifically does not assess the integrity of the veil 'in point of fact' and then regard it so in 'in point of law'. Indeed, the veil seems better than ever at concealing tax evasion, fraud and debt. Statutory intervention, which sets aside the corporate veil, is a timely reminder that the company is a creature of government policy. Cork Committee, set up in 1982, was particularly concerned that limited liability allowed directors to act irresponsibly, knowing that they were protected by the corporate veil and that they would not be personally liable for the losses caused by their reckless management. The result of Cork's recommendations was the Insolvency Act 1986, which provided for the personal liability of directors whose dishonest behaviour diminished company' assets and the company was insolvent.
