PIERCING CORPORATE VEIL WITH THE ASSUMPTION OF FRAUD OF PARTNER IN IRAN AND ENGLAND'S LAW

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SHAHBAZI NIA MORTEZA; ISAEI TAFRESHI MOHAMMAD; KAVIANI KOUROSH; FARAJI ESMAEIL

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Journal: THE JUDICIARY’S LAW JOURNAL Year:2011 | Volume:75 | Issue:74 Page(s): 9-39

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Title

PIERCING CORPORATE VEIL WITH THE ASSUMPTION OF FRAUD OF PARTNER IN IRAN AND ENGLAND'S LAW

Author(s)

SHAHBAZI NIA MORTEZA | ISAEI TAFRESHI MOHAMMAD | KAVIANI KOUROSH | FARAJI ESMAEIL | Issue Writer Certificate

Keywords

LEGAL PERSONQ2

LEGAL PERSONALITY OF COMMERCIAL COMPANYQ2

PIERCING CORPORATE VEILQ2

FRAUDQ2

Abstract

Sometimes people establish Commercial companies to pursue their FRAUDulent purposes under the veil of LEGAL PERSONality of the company. The law of Iran has not predicted a solution for this legal dilemma. In other legal systems such as English legal system, the courts confront these kinds of FRAUDulent acts under the famous doctrine of "Piercing the Corporate Veil" by authorizing the creditor of the company which assets are not sufficient to compensate the credit, to withdraw the limited liability rule and recover its respective claims from the assets and property of the FRAUDulent partner(s). In this research, we try to investigate and recognize this concept in the Law of Iran. The result of this research shows that within the English legal system, FRAUDulous use of the commercial company form will undoubtedly entail to the withdrawal of the corporate veil and unlimited liability of the FRAUDulent partner(s), however, some matters such as the legal sanctions, and also the concept of unfair actions, are still under dispute. As a result of this research it is also indicated that in our domestic legal system relying upon the doctrine of "fraud" it is possible to impede the validity of FRAUDulent acts of partner(s) and exceptionally rule on the unlimited liability of these people towards the company creditors.

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APA: Copy

SHAHBAZI NIA, MORTEZA, ISAEI TAFRESHI, MOHAMMAD, KAVIANI, KOUROSH, & FARAJI, ESMAEIL. (2011). PIERCING CORPORATE VEIL WITH THE ASSUMPTION OF FRAUD OF PARTNER IN IRAN AND ENGLAND'S LAW. THE JUDICIARY’S LAW JOURNAL, 75(74), 9-39. SID. https://sid.ir/paper/138027/en

Vancouver: Copy

SHAHBAZI NIA MORTEZA, ISAEI TAFRESHI MOHAMMAD, KAVIANI KOUROSH, FARAJI ESMAEIL. PIERCING CORPORATE VEIL WITH THE ASSUMPTION OF FRAUD OF PARTNER IN IRAN AND ENGLAND'S LAW. THE JUDICIARY’S LAW JOURNAL[Internet]. 2011;75(74):9-39. Available from: https://sid.ir/paper/138027/en

IEEE: Copy

MORTEZA SHAHBAZI NIA, MOHAMMAD ISAEI TAFRESHI, KOUROSH KAVIANI, and ESMAEIL FARAJI, “PIERCING CORPORATE VEIL WITH THE ASSUMPTION OF FRAUD OF PARTNER IN IRAN AND ENGLAND'S LAW,” THE JUDICIARY’S LAW JOURNAL, vol. 75, no. 74, pp. 9–39, 2011, [Online]. Available: https://sid.ir/paper/138027/en

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