... debts of the company, and any capital they had injected into the company would be lost if the company had to pay its debts or had been liquidated. 'Corporate Veil' is "A legal term referring to the separation between a shareholder and a corporation. The term refers to the fact that a shareholder is not liable for the debts of the corporation" A corporation is seen or treated as separate and distinct from an individual or with the capacity to own a property in it rights and to sue or be sued.in their own rights, this mean that the corporation will not have to rely on the rights of individual members in the company. Shareholders are mostly protected by the 'corporate veil' however in some circumstances the veil of incorporation is lifted. When the veil is lifted it reveals the identity of the shareholder that is liable for any ...

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