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Dear Tutor,
I have a question ?
Where a disqualified director participates in the management of a company. – Is it a necessary circumstances to lift the veil of incorporation ?
I’m not fully sure where your question is leading
However, where a person acts as a director, even though they may still be subject to a disqualification order, I believe that their punishment is jail time for contempt of Court
As for the position with reference to any contracts into which they have entered on behalf of the company … my understanding is that the company would still be liable to any innocent third party
OK?
I want to know that if disqualified director participates in the management of a company, is it a reason for lift the veil of incorporation.
Why would the Court wish to lift the veil? For what reason? The rationale for lifting the veil is to find who are the beneficial owners of a company or to discover the identity of those that control the company
I don’t see the relevance of the disqualification of a director being any reason to lift the veil
OK?
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