Explain The Phrases “Directing Mind And Will” And “Piercing The Corporate Veil” (Essay Sample)

EXPLAIN THE PHRASES “DIRECTING MIND AND WILL” AND “PIERCING THE CORPORATE VEIL”
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Explain the Phrase “Directing Mind and Will”
The existence of corporations is believed to either enhance employment opportunities, quality of life of the people and living standards or undermine them. In recent times, there has been contemplations and debate that when industrial activities are changed, then there will be an automatic necessity of regulation (Synodinou 2017, p.125). However, these companies have caused harm and deaths to the public; they have since been pardoned by the government and courts hence making the corporations to continue with their businesses with slight interference with the regulations (Synodinou 2017, p.130). Therefore this paper seeks to highlight some of the problems that underlined the right approach concerning company criminal liability and additionally analyses on the law governing corporate manslaughter.
The issue of criminal liability in the past 15 years among companies has stimulated extraordinary interests. However, several factors have delayed the full development of criminal business act (Synodinou 2017, p.139). One of the factors was the procedural requirement which required the accused corporations to attend court proceedings in person without necessarily being represented in any stages of court proceedings (Synodinou 2017, p.140). But this has been changed in regards to Companies Act 1963 which guaranteed the companies room to be represented in any court proceeding.
The most current legislation relating to companies in the Company Act 2006. The act differentiates and treats corporations and companies separately though both have a common concept (Synodinou 2017, p.126). With this regard, a corporation is defined as “an artificial person created by law” meaning companies exist independently as individuals who are the members of the entity.

Explain the phrase “Piercing the corporate veil”
Piercing the corporate veil refers to the situation when court may decide to put aside limited liability of a given business and hold the corporation’s stakeholders personally responsible for the company’s debts (Matheson 2008, p.99). Veil piercing is common in close corporations. Since every state defines their law which governs it, generally courts are entitled to the firm presumption against the piercing of the corporate veil and can only do so in cases where there have been serious cases of misconduct, for instance, the abuse of the company form (Matheson 2008, p.100). The serious misconducts may involve intermingling of corporate and personal assets or when decides to undercapitalized at the time of incorporation.
There are two common instances which necessitate the piercing of the corporate veil by the court and order the suing of the shareholders. One of them is the case of fraud (Matheson 2008, p.99). Here, when the corporation is found to be mock which is set up for the purpose of conducting fraudulent deals. The second instance is the case of conspicuous and willful action by the corporate shareholders or rather officers which make the corporate to benefit over public property.
The co...