If the corporate veil is lifted, who can be held liable for the company's debts?

• A. The government
• B. Directors, shareholders, and group companies
• C. Creditors
• D. The beneficiaries

Answer: (B)

Lifting the corporate veil means disregarding the company’s separate legal personality and looking to those who control or misuse it to meet the company’s liabilities. When this happens, liability can fall on the people and entities that run or own the business—typically directors, shareholders, and other group companies—especially if the company was used as a façade or for improper purposes. The government, creditors, or beneficiaries aren’t automatically liable just because the veil is pierced; they are generally the claimants or the state, not the parties required to pay the company’s debts. So the most accurate outcome is that those in control—directors, shareholders, and group companies—can be held liable.