Separate legal personality persists for subsidiaries, but courts may pierce the corporate veil where control is misused to perpetrate fraud or evade obligations. A subsidiary is a company in which the holding company controls board composition or more than half the voting power, including through other subsidiaries, subject to prescribed limits on layers. Group companies are separate legal entities under common control used for varied commercial purposes. Separate legal personality is generally respected, but courts may disregard it in exceptional, fact-specific cases of fraud, agency of members, or where a subsidiary is a mere camouflage for the holding company; mere common shareholding or directorship does not justify treating group members as one economic entity.
Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.
Provisions expressly mentioned in the judgment/order text.
Separate legal personality persists for subsidiaries, but courts may pierce the corporate veil where control is misused to perpetrate fraud or evade obligations.
A subsidiary is a company in which the holding company controls board composition or more than half the voting power, including through other subsidiaries, subject to prescribed limits on layers. Group companies are separate legal entities under common control used for varied commercial purposes. Separate legal personality is generally respected, but courts may disregard it in exceptional, fact-specific cases of fraud, agency of members, or where a subsidiary is a mere camouflage for the holding company; mere common shareholding or directorship does not justify treating group members as one economic entity.
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