THE CONCEPT OF “LIFTING THE CORPORATE VEIL” AND ISSUES OF ITS IMPROVEMENT IN THE CORPORATE LAW OF UZBEKISTAN

Abstract

The principle that forms the basics of corporate law implies that the identity, property and liability of a legal entity are separated from the identity, property and liability of the shareholders and managers involved in it. However, there is a risk that the interests of creditors will be harmed as a result of the activities of some individuals who abuse limited liability formed in corporate law. In this regard, the practice of applying to the institute of “lifting the corporate veil” has been introduced in the corporate law of developed countries. In world practice, ex ante and post control measures are taken to ensure the interests of creditors of legal entities created with the element of limited liability. According to ex ante control it is meant that taking measures to ensure the interests of creditors when establishing a legal entity. These measures include the establishment of requirements for the minimum amount of the share capital, liability insurance of legal entities, etc. Post control envisages measures to ensure the interests of creditors at the stage of emergence of liability of legal entities and to strengthen and improve in the legislation the possibility of applying the concept of “lifting the corporate veil”. This article discusses the essence of the concept of “lifting the corporate veil” and issues related to the improvement of this concept in the corporate law of Uzbekistan, based on international experience.