who authorizes or permits the default shall be liable to the like penalty.Failure to conduct Annual General Meetings:-According to Pakistan Companies Act 2017, a company may be wound up by the Court if default is made in holding any two consecutive annual general meetings.
Refund application money:-According to Pakistan Companies Act 2017, if the repayments of money received for shares application are not allotted then court uplift the veil on company.If the refundrequired is not made within the time specified, the directors of the company shall be jointly and severally liable to repay that money with surcharge at the rate of two percent for every month or part thereof from the expiration of the fifteenth day and, in addition, shall be liable to a penalty of level 3 on the standard scale.Premature trading:-According to Pakistan Companies Act 2017, the consequences of non-compliance of section 19 i.e.
commencement of business by a public company is uplifting the veil of company. Under this segment, a state funded restricted company recently consolidated all things considered must not “do business or exercise whatever obtaining power” until it need got starting with the registrarofcompanies. If it enters into any transaction contrary to this provision not only are the company and its officers in default, liable to pay fines but if the company fails to comply with its obligations in that connection within 21 days of being called upon to do so, the directors of the company are jointly and severally liable to indemnify the other party in respect of any loss or damage suffered by reason of the company’s failure.Relationship between Uplifting of veil & Tort:-A finding of tortious liability against a shareholder for activities carried out through the medium of a company has the possibility of negating the Salomon principle i.e. uplifting the veil on company.
The courts have increasingly been faced with this possibility.Concluding Remarks:-The act of piercing the corporate veil until now remains one of the most controversial subjects in corporate law. There are classes for example fraud, agency, sham or facade, shamefulness and group enterprises, which are accepted particular support under which the Judiciary and statute might penetrate in the corporate cover.