ABSTRACT
Separation of company and shareholder is clearly beneficial to shareholders and makes companies very attractive propositions. But like all benefits there is a price to be paid. Firstly, the company and its officers are made subject to a demanding regulatory regime with sanctions imposed for non-compliance. Secondly, a court always reserves the right to examine a company’s incorporated status and if it is discovered that incorporation is merely being used as a front behind which wrongdoing takes place then figuratively the veil of incorporation will be lifted so that the true relationship between the company and its manipulators can be identified. This chapter draws attention to the consequences of incorporation and identifies the circumstances that may arise whereby corporate status will be forfeited. The significance of corporate personality may be readily appreciated from what probably continues to be the most important case in company law.
