Question

Where a fraudulent and dishonest use is made of the legal entity, the Court will break through the corporate shell and apply the principle of what is known as ________.

• A. Sifting of the corporate personality
• B. Doctrine of privity of contract
• C. Piercing through the corporate veil
• D. Doctrine of unjust enrichment

Answer 1

Answer: (C)

Piercing through the corporate veil

The doctrine of piercing through the corporate veil means legal decision to treat the rights and liabilities of a corporation as the rights and duties of the shareholder.