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Mumbai University · FY LLB · Sem II
What is Corporate Veil?
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What is Corporate Veil?
Q1Short Answers — Answer in one or two sentencesAttempt Any Six • 2 marks each • Total: 12 marks2025
(h)What is Corporate Veil?

The Corporate Veil is the legal fiction that separates a company as a distinct juristic person from its members and shareholders, thereby protecting them from personal liability for the company's debts and obligations. This principle originated in Salomon v. Salomon & Co. Ltd. (1897), where the House of Lords held that a company is a legal person wholly distinct from its members, even if one shareholder holds virtually all the shares.