１．Introduction
The legal system in Malaysia recognized companies as separate
legal personalities from its officers, directors or shareholders.
The separation renders certain actions (in the event of default)
taken against the company alone and not against its
directors.1
The above principle is known as the doctrine of separate legal
entities which imply the existence
of "corporate
veil" that gives the distinction between
the company as one entity and its Directors as another separate
entity. As much as this principle may sound like a safeguarding
shield for a company's Directors, in certain situations, as
precedented, the law could lift or pierce through the corporate
veil and hold the Directors accountable for the default committed
by him/her within the company.
