Browsing by Author "Kessow, Payal Dharmesh"

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    Piercing the Corporate Veil: Exploring Legal Implications and Corporate Accountability
    (2024) Kessow, Payal Dharmesh; Stoop, Helena
    This thesis seeks to explore and analyse the concept of piercing the corporate veil within the context of South African corporate law. The purpose of this study is to provide a comprehensive understanding of the circumstances in which courts in South Africa may disregard the separate legal personality of a company and hold the shareholders or directors accountable for the company's actions. The corporate veil is a fundamental principle that shields individual shareholders from personal liability for the actions of a corporation. However, in certain circumstances, courts may lift this veil to hold shareholders personally accountable for corporate obligations. This study begins by examining the concept and origins of separate legal personality, examining the legal concepts associated with this principle. The South African position on piercing the corporate veil is then discussed. An analysis of both the common law and statutory law is given. To enrich this discussion, a comparative analysis will also be made between the approach in South African law and the one adopted in English law. It will include a detailed examination of the origins, principles and interplay between the common law and statutory law provisions. Reference will also be made to the German position on piercing the corporate veil, which will discuss their position in relation to piercing the corporate veil. Furthermore, this thesis investigates the policy considerations underlying the piercing of the corporate veil in South African and English law. Differences in legal traditions and economic structures contribute to variations in the legal standards and tests applied by courts. This research aims to provide a comprehensive understanding of the factors that influence judicial decisions in piercing the corporate veil. A comparative analysis will also be employed to illustrate the practical application of the doctrine in various scenarios, shedding light on the outcomes and reasoning in each jurisdiction.