Scenario:

Dr Skywalker has been running a furniture manufacturing business in his own personal capacity as a sole proprietor. In January 2015, he set up Sky Sdn Bhd, a private company limited by shares for the business of furniture manufacturing. Both Dr Skywalker and Mrs Skywalker are the directors of the company. Although the business run by Dr Skywalker was worth RM100, 000, Dr Skywalker transferred the business to the company for RM200, 000. The company in exchange for the business granted Dr Skywalker a charge for RM200, 000 on the companys properties. Upon the company being set up, Dr Skywalker purchased insurance from Insurance Sdn Bhd for the furniture belonging to the company under his own personal name. Two months after purchasing the insurance, the furniture of the company was destroyed by fire. The company incurred a huge loss of 6 months business resulting in a loss of RM10, 000. Since then, the company has suffered huge loss and does not have any profit available for dividends. However, Dr Skywalker still causes the company to declare dividends out of the capital of the company. Recently, the company is wound-up by the court on the ground of the company being unable to pay its debts to its business partners.

Question:

1. Elaborate the circumstances when the veil of incorporation can be lifted by the court based on the statutory and judicial exceptions