oa De Rebus - Hiding behind the veil : feature
The vexed topic of piercing the corporate veil under s 20(9) of the Companies Act 71 of 2008 (the Act) was discussed by the author in De Rebus in August 2012 (2012 (Aug) DR 22). Section 20(9) of the Act gives the courts a general statutory discretion to pierce the corporate veil. It was submitted in that article that there are some uncertainties regarding the interpretation and the scope of s 20(9) of the Act, such as -
- the meaning of the term 'unconscionable abuse';
- whether s 20(9) overrides the common law instances of piercing the corporate veil;
- whether piercing of the veil is still to be regarded as an exceptional remedy that may be used only as a last resort; and
- who an 'interested person' would be under s 20(9).
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