"The Courts will intervene in certain exceptional judicial circumstances as a matter of justice by applying the concept of "Lifting the Corporate Veil" where the Courts have totally disregarded the concept of Separate Legal Entity. In a recent Federal Court decision of Ahmad Zahri Mirza Abdul Hamid v AIMS Cyberjaya [2020] 6 CLJ 557, the Court held that the judicial exception under 'group enterprise' was a valid ground under general law to pierce the corporate veil. Mohd Zawawi Salleh FCJ at paragraph 15 of the case, where he held that

- "A court may lift/pierce the corporate veil where the relationship between companies in the same group is so intertwined that they should be treated as a single entity to reflect the economic and commercial realities of the situation. An argument of "group enterprise" is that in certain circumstances a corporate group is operating in such a manner as to make each individual entity indistinguishable, and therefore it is proper to lift/ pierce the corporate veil to treat the parent company as liable for the acts of the subsidiary. Lifting/piercing the corporate veil is one way to ensure that a corporate group, which seeks the advantages of limited liability, must also accept the corresponding responsibilities."

REQUIRED - Elaborate on the relevant laws with decided cases where the Courts had to intervene in exceptional judicial circumstances by 'lifting the corporate veil' and discarding the concept of Separate Legal Entity.

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