​English Company Law - Under the statute, disregarding corporate personality

​English Company Law - Under the statute, disregarding corporate personality
 Because companies are given corporate identity by statute (specifically, section 16(2) of the CA 2006), it follows that statute can revoke corporate personality and hold individuals behind the veil liable.

The following are some notable examples: If a public company does business or exerts borrowing authority before receiving a trade certificate, the directors may be held personally accountable (CA 2006, s 767).

When it appears that a company was run with the intent to defraud creditors (known as fraudulent trading) during the winding up/administration process, the court may lift the veil and impose personal liability on any persons who were aware of the conduct (Insolvency Act 1986, ss 213 and 246ZA, ).

​When a company enters insolvent liquidation or administration, the directors may be personally liable if they continue to trade when they knew, or should have known, that there was no reasonable prospect of the company avoiding insolvent liquidation or administration (wrongful trading) (Insolvency Act 1986, ss 214 and 246ZB)