Please use this identifier to cite or link to this item:
Nature of company
- The most important type of business association in Myanmar is Company. One of the most important characters of a company is that after a company is legally formed, it possesses a separate legal personality in accordance with the Company Law. This characteristic is quite different from other business association such as a partnership firm. As a result, each and every member of a Company will not be liable to any debts or obligations due to the company. However, in exceptional cases, a member of a company shall be responsible for the debts and obligations of his or her company due to various reasons. These cases are called in legal term as lifting the veil. There are two kinds of lifting the veil, statutory lifting the veil and judiciary lifting the veil. When a company wants of any legal qualification and acts business transactions by a member, such member will be liable to obligations occurred by such actions. It shall be called statutory lifting the veil. On the other hand, a Company is created for some fraudulent purposes and used as a device to hide behind the mask of the Company. In this case, the Court is entitled to lift such veil by showing such fraudulent actions of member or members of such Company. It will be called judiciary lifting the veil. When the Law or a Court lifts a veil of a Company, it does not acquire any separate existence and as a result it is never regarded in law as distinct and separate from its members.
Thit Oo Hlaing
- Myitkyina University Research Journal