ACCA LW · Chapter 8 · Question 4 of 11
Which of the following is an example of the veil of incorporation being lifted by STATUTE rather than by the courts at common law?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: D) Personal liability of a director for wrongful trading under s214 Insolvency Act 1986
Explanation
Statutory provisions that impose personal liability despite separate personality include fraudulent and wrongful trading (ss213 and 214 Insolvency Act 1986), use of a prohibited name of a liquidated company (s216-217), and a public company trading without a trading certificate. The other options are common law cases where the courts lifted or considered lifting the veil.
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