Outline and critically discuss the statutory and common law examples Essay

Outline and critically discuss the statutory and reciprocal law examples of lifting the conceal on incorporated personality - Essay ExampleThere are several statutory examples in which the courts are prepared to lift the veil of the corporation. For example low the Proceeds of Crime propel 2002, in which the court can make a confiscation order against a convicted sorry has been apply to lift the corporate veil.3 Guidelines have been established setting forth the limitations for which confiscation orders can be do that lift the corporate veil. It was held in R v Seager by Aikens LJ that under the criminal law on that point are three circumstances in which the corporate shield may be lifted. Firstly, if it is established that the convicted criminal attempted to hide his criminal activities and the proceeds of those activities behind the corporations separate legal personality, the veil may be lifted.4Secondly, the corporate veil may be lifted in cases where the convicted crimi nal affiliated crimes constituting the criminal offence for which he/she is convicted. Finally, the shield may be lifted where the transaction or line structures constitute a device, cloak, or sham, i.e. an attempt to disguise the true character of the transaction.5 In other words, the Proceeds of Crime Act 2002, will be used in instances where it is clear that the company was used as an instrument in crime for either evading criminal indebtedness or for hiding the proceeds of crime.6There are several other statutes, particularly revenue statutes where the corporate veil is lifted for the collection of taxes. Moreover, the corporate veil can also be lifted under the Landlord and Tenant Act 1954 and Trading with the Enemy Act 1939.7 Both statutes are used to determine whether or not the individual and the company are so intricately tied that it is difficult to distinguish surrounded by the two.8The statutes considered here are the Insolvency Act 1986 and the Companies Act 2006. Th ere are four examples under the Insolvency Act 1986 in which the corporate veil may be lifted. Under Section 122(1)(g),