What is a statutory example that might lead the veil of incorporation to be lifted?

The concept of lifting the veil of incorporation pertains to circumstances where the legal separation between a company and its shareholders is disregarded, often revealing the individuals behind the company to personal liability. In this context, a statutory example that may lead to the veil being lifted involves disqualified directors.

When a director is disqualified under statutory provisions, it indicates that the director is no longer legally permitted to act in that capacity due to reasons such as misconduct or failure to adhere to legal requirements governing corporate behavior. This disqualification can lead to the court holding the individual personally responsible for the company's actions, especially if those actions have led to financial loss or breaches of law. The lifting of the veil might occur in situations where the company’s conduct has been directed by a disqualified individual, highlighting that legal protections meant for the company and its shareholders do not extend to the disqualified directors acting in that capacity.

Other options, while relevant to business performance or governance, do not exemplify statutory grounds under which the veil may typically be lifted. Successful business operations, growing company profits, and shareholder approvals relate to the company’s performance or governance and do not inherently involve breaches of law that would necessitate the veil being lifted.