LIFTING OF THE CORPORATE VEIL AND LIMITED LIABILITY IN PAKISTAN: CORPORATE VEIL AND LIMITED LIABILITY

Abstract

If there are no exceptions in the enactments, then their enforcement and interpretation in specific circumstances cannot be carried out, which can lead to challenging situations. It is always necessary to keep laws in a way that can achieve their purpose of enactment and must explain their exceptions in the same statute. The Company Act of 1913 provided for limited liability and its exceptions through express clauses, and that act served as the basis for Pakistani company law. However, Pakistani company law does not offer a method for relying on the corporate veil in the event that the company's management defrauds the company. The aim of this cover can be misused in the lack of specific provision for utilizing the idea of lifting or breaching the corporate veil by ignoring the doctrine of limited liability established in company law. This paper may help to fill in that vacuum.