The Effectiveness of the Piercing of Corporate Veil Under Sri Lankan Law: A Comparative Analysis of the Sri Lankan Law with UK Law.

Abstract

This research intends to discover and evaluate the adequacy of Sri Lankan statutory provisions and case laws regarding the corporate veil piercing doctrine compared to the UK jurisdiction. This also intends to find out the reforms and solutions to amend the Sri Lankan Companies Act and also to develop the law relating to this field. This is especially focused on to find a solution to the current corporate issues in Sri Lanka. This research has included the historical evolution of the concept of separate legal personality and the veil piercing theory and their current application in UK and Sri Lankan jurisdictions. This research critically analyses the development of the case laws and the statutory provisions regarding the veil piercing in the above mention jurisdictions, based on the qualitative and traditional black letter methodology. After analysing all above aspects, finally this research came to a conclusion, the current statutory provisions in Sri Lanka regarding the veil piercing is adequate. However, there is still a lack of judicial interpretations regarding this doctrine and need to regulate some set of uniform rules to pierce the veil. This research comes into the end with the suggestions of some minor reforms to the Companies Act No 07 of 2007 Sri Lanka and other generally applicable Suggestions.