Despite the company is known for its separate legal existence, New Zealand courts have the right to challenge the corporate existence, by disregarding the idea of separate legal personality of the company. Court will pierce the corporate veil in order to hold individual (shareholders) liable for any dishonesty behavior like fraud or even evading legal obligation by using the company as help. For example as a precedent case, in Gilford Motors Co. Ltd v Horne , Mr Horne created a new company in which he wasn't a director or a shareholder of this company but instead his wife and friends were