Abbo v Cimeel Engineering Ltd
Abbo v Cimeel Engineering Ltd (Miscellaneous Application No. 29 of 2013) [2018] UGCommC 41 (12 June 2018)
The court held that for the corporate veil to be lifted under section 20 of the Companies Act 2012, the applicant must strictly prove fraud to the satisfaction of the court. The applicant merely alleged fraudulent conduct by the Director but failed to provide evidence meeting the required standard. The court found that the applicant did not demonstrate that the company was used as a mere facade to perpetrate fraud or that the Director personally benefited from such conduct. As such, the legal threshold for lifting the corporate veil was not met, and the application was dismissed.
Source excerpt
- Lifting Corporate Veil
- Fraud Proof Requirements
- Director Liability
- Company Law Procedure