Abstract

A company could be defined as an association or group of persons coming together with the aim of doing business under a name with rights and liabilities. Upon incorporation, a company becomes a juristic person capable of being accorded rights and duties with power to sue or be sued in its corporate name. It acquires the status of corporate legal personality with such ability as that of a natural person in acquisition of property, legal rights to sue and be sued. In the course of performance of these roles, problems which often occur are sometimes difficult to trace and manage among its staff which are actually the corporate’s hands and legs. Most of these problems may lead to corporate distress and may seek remedy through legal action or corporate restructuring. On this premise, this paper reviews the roles of corporate legal personality vis-à-vis right of action for redress and in restructuring such as corporate reconstruction, compromise, etc. These are examined through the doctrinal research methodology on cases of infidelity and assets mismanagement by company’s staff with a view to mitigating corporate drawbacks. The doctrine of lifting the veil of incorporation is therefore recommended as suitable tool in right of action.