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Apex court considers application of Prest in piercing corporate veil


Introduction
A separate legal entity – or rather, a corporate veil – exists to separate a corporate entity from its incorporators upon incorporation. Citing the century-old case
Solomon v A Solomon & Co Ltd,(1) Justice Nallini Pathmanathan stated the following in
Ong Leong Chiou v Keller (M) Sdn Bhd:(2)
The juristic principle comprising the bedrock of company law is the legal fiction that on incorporation, the corporate entity is clothed with a separate and distinct personality. It is a legal person distinct from its members.(3)
It is also well established that the corporate veil can be lifted or pierced when the corporation is used for fraudulent, dishonest and unlawful purposes. ....

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