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Piercing the Corporate Veil: The Case of Holding Company and Subsidiary

A company is a juristic person, separate from its shareholders. Its property is not the property of its shareholders (though it is running the business of shareholders) ; its debts are not the debts of its members; and has perpetual succession. From the date and time of registration of its incorporation, a company is considered a juristic person, and exists continually until its name is removed from the companies’ register. Its existence is therefore noted formally in a register until its dissolution or deregistration. A properly registered company, is relatively a separate entity from its shareholders and therefore a distinct legal persona either individually or as a body. Any activities by the company must therefore be distinguishable as those of the company and not of its individual members.