n SA Mercantile Law Journal = SA Tydskrif vir Handelsreg - Piercing the veil under section 20(9) of the Companies Act 71 of 2008 : a new direction
|Article Title||Piercing the veil under section 20(9) of the Companies Act 71 of 2008 : a new direction|
|© Publisher:||Juta Law Publishing|
|Journal||SA Mercantile Law Journal = SA Tydskrif vir Handelsreg|
|Affiliations||1 University of South Africa|
|Publication Date||Jan 2014|
|Pages||307 - 337|
The separate legal personality of a company is the very foundation on which company law rests. The Companies Act 71 of 2008 ('the Companies Act') has introduced into South African company law, for the first time, a statutory provision permitting inroads to be made into this fundamental principle. Section 20(9) of the Companies Act permits a court to disregard the separate legal personality of a company and to pierce the corporate veil in instances of 'an unconscionable abuse of the juristic personality of the company as a separate entity'.
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