Definition of Corporate veil:
A legal concept that separates the personality of a corporation from the personalities of its shareholders, and protects them from being personally liable for the companys debts and other obligations. This protection is not ironclad or impenetrable. Where a court determines that a companys business was not conducted in accordance with the provisions of corporate legislation (or that it was just a façade for illegal activities) it may hold the shareholders personally liable for the companys obligations under the legal concept of lifting the corporate veil.
(In Corporate Law) used with reference to the treatment of a corporation as an entity separate from its directors and shareholders, thus protecting them from personal liability for the companys debts and other obligations; frequently in to pierce (also lift, etc.) the corporate veil to identify the rights or duties of a corporation with the rights or liabilities of its shareholders or directors in certain circumstances.
Meaning of Corporate veil & Corporate veil Definition