A company is a legal person separate from its members and therefore the identity and motives of those who form and control the company are not relevant.  This is known as the ‘veil of incorporation’. This means that the outsiders who deal with the company are not allowed to go behind the company and get those who formed it or actually control it.

 

There are however exceptions to the above rule, which are referred to as situations where the veil of incorporation is lifted such as in cases where persons carry on the company with the intention to defraud creditors or in cases where a company goes into insolvent liquidation and its director knew or ought to have known that such liquidation could not be avoided and did not take any steps to minimize loss to creditors, etc or in cases of abuse of the company principle.