The Corporate Veil and its Relevance to Co-operative Societies in Nigeria

Abstract

This article appraised the corporate veil concept as given judicial imprimatur in the pivotal case of Salomon v A. Salomon & Co Ltd and its relevance to co-operative societies in Nigeria by analysing relevant case law and statutes.  The article posited that the rigid concept was alive and well in relation to co-operative societies in Nigeria and suggested that the uncertainty faced by most common law countries, regarding when the veil could be lifted by the court to ameliorate the rigours of the concept could be overcomed if the persuasive dictum of the House of Lords in the recent case of Prest v Pretrodel Resources is followed by the Nigerian courts.  The courts are however admonished not to exercise this power capriciously.

Key words: Company - Co-operative societies - corporate veil - lifting of veil – Legal

personality - Nigeria – Registration