Priyanka Biswas GNLU, Gandhinagar “Editor’s Note: The paper deals with the whistle-blowing policy of various corporates and the legal protection afforded to such actions in countries like USA, UK and India under their legal framework. The focus is on the role of an employee’s role in the whistle blowing process.” […]
In recent years, the relations between the ownership and management have become the basis of Modern Corporation. While corporate governance essentially lays down the framework for creating long term trust between companies and the external providers of capital, it would be wrong to think that its importance lies solely in better access of finance. The key aspects of good corporate governance include transparency of corporate structures and operations, the accountability of managers and the boards to shareholders; and corporate responsibility towards stakeholders. While companies around the world are realizing that better corporate governance adds considerable value to their operational performance, India still needs to improve its standard of the same and cover up for the weaknesses.
The principle of veil of incorporation is a legal concept that separates the personality of a corporation from the personalities of its shareholders and protects them from being personally liable for the company’s debts and other obligations. While a company is a separate legal entity, the fact that it can only act through human agents that compose it, cannot be neglected. Since an artificial person is not capable of doing anything illegal or fraudulent, the façade of corporate personality might have to be removed to identify the persons who are really guilty. This is known as lifting of the corporate veil. Besides the statutory provisions for lifting the corporate veil, courts also do lift the corporate veil to see the real state of affairs. However, even though the legislature and the courts have in many cases now allowed the corporate veil to be lifted, it should be noted that the principle of veil of incorporation is still the rule and the instances of lifting or piercing the veil are the exceptions to this rule.
By Samridhi Arora, Amity University Editor’s Note: Corporate Veil is the principle in corporate law which states that company and its shareholders are two different identities independent of its existence . Piercing of corporate veil is a legal method of trying to go behind this veil. It is employed by the […]
By Vipul Kumar Tiwari, Jibin Mathew George, Amity Law School, Delhi Editor’s Note: Corporate Social Responsibility can be defined as the economic, legal, ethical, and discretionary expectations that society has of organizations at a given point in time. The author has described CSR with related to Companies Act, 2013. INTRODUCTION […]
By Akshit Mago & Uday Pratap Singh Editors Note: This papers essentially seeks to undertake a critical appraisal of certain new concepts introduced by the Companies Act, 2013 such as One Person Company, Corporate Social Responsibility and Vigil Mechanism. The author have briefly highlighted the positive outcomes and the effect thereon. […]