The Rationale for Piercing the Corporate Veil to Enhance the Accountability of the Municipal Manager in Mahikeng Local Municipality
This article analyses the possible application of the principle of piercing the corporate veil in a local municipality as a measure of fostering and enforcing accountability of the municipal manager and the municipal council in Mahikeng local municipality. The principle of piercing the corporate vei...
| Main Authors: | , , |
|---|---|
| Format: | Article |
| Language: | English |
| Published: |
ADJURIS – International Academic Publisher
2023-06-01
|
| Series: | Perspectives of Law and Public Administration |
| Subjects: | |
| Online Access: | https://www.adjuris.ro/revista/articole/An12nr2/6.%20Chitimira,%20Sethunyane,%20Magau.pdf |
| _version_ | 1797304075817058304 |
|---|---|
| author | Howard Chitimira Tumelo Sethunyane Phemelo Magau |
| author_facet | Howard Chitimira Tumelo Sethunyane Phemelo Magau |
| author_sort | Howard Chitimira |
| collection | DOAJ |
| description | This article analyses the possible application of the principle of piercing the corporate veil in a local municipality as a measure of fostering and enforcing accountability of the municipal manager and the municipal council in Mahikeng local municipality. The principle of piercing the corporate veil is provided under section 20(9) of the Companies Act 71 of 2008. The piercing of the corporate veil occurs when the courts disregard the division between a company and the person who controls it and then attribute liability to the person who misused the principle of a separate legal personality in that company. The article identifies, inter alia, maladministration, fraud and corruption as the basis on which the courts would pierce the corporate veil in Mahikeng local municipality to ensure accountability in the municipal manager. It is submitted that the principle of piercing the corporate veil should be carefully applied in Mahikeng local municipality to promote accountability and better service delivery to the community. The principle of piercing the corporate veil could help to ensure accountability of municipal funds and resources in Mahikeng local municipality by curbing the improper use of municipal funds and resources by the municipal council and the municipal manager. Lastly, the possible advantages of piercing the corporate in Mahikeng local municipality are discussed. |
| first_indexed | 2024-03-08T00:04:13Z |
| format | Article |
| id | doaj.art-80c76e78d76244a98929e671ff6318fc |
| institution | Directory Open Access Journal |
| issn | 2601-7830 |
| language | English |
| last_indexed | 2024-03-08T00:04:13Z |
| publishDate | 2023-06-01 |
| publisher | ADJURIS – International Academic Publisher |
| record_format | Article |
| series | Perspectives of Law and Public Administration |
| spelling | doaj.art-80c76e78d76244a98929e671ff6318fc2024-02-17T13:07:33ZengADJURIS – International Academic PublisherPerspectives of Law and Public Administration2601-78302023-06-01122202215The Rationale for Piercing the Corporate Veil to Enhance the Accountability of the Municipal Manager in Mahikeng Local MunicipalityHoward Chitimira 0Tumelo Sethunyane 1Phemelo Magau2Research Professor and Professor of Securities and Financial Markets Law, Faculty of Law, North West University, South AfricaCandidate attorney at ME Tlou Attorneys & Associates Inc, Mmabatho, South AfricaLecturer, School of Law, University of KwaZulu-Natal, South AfricaThis article analyses the possible application of the principle of piercing the corporate veil in a local municipality as a measure of fostering and enforcing accountability of the municipal manager and the municipal council in Mahikeng local municipality. The principle of piercing the corporate veil is provided under section 20(9) of the Companies Act 71 of 2008. The piercing of the corporate veil occurs when the courts disregard the division between a company and the person who controls it and then attribute liability to the person who misused the principle of a separate legal personality in that company. The article identifies, inter alia, maladministration, fraud and corruption as the basis on which the courts would pierce the corporate veil in Mahikeng local municipality to ensure accountability in the municipal manager. It is submitted that the principle of piercing the corporate veil should be carefully applied in Mahikeng local municipality to promote accountability and better service delivery to the community. The principle of piercing the corporate veil could help to ensure accountability of municipal funds and resources in Mahikeng local municipality by curbing the improper use of municipal funds and resources by the municipal council and the municipal manager. Lastly, the possible advantages of piercing the corporate in Mahikeng local municipality are discussed. https://www.adjuris.ro/revista/articole/An12nr2/6.%20Chitimira,%20Sethunyane,%20Magau.pdfaccountabilitytransparencypiercing the corporate veilmunicipal managerlegal personality |
| spellingShingle | Howard Chitimira Tumelo Sethunyane Phemelo Magau The Rationale for Piercing the Corporate Veil to Enhance the Accountability of the Municipal Manager in Mahikeng Local Municipality Perspectives of Law and Public Administration accountability transparency piercing the corporate veil municipal manager legal personality |
| title | The Rationale for Piercing the Corporate Veil to Enhance the Accountability of the Municipal Manager in Mahikeng Local Municipality |
| title_full | The Rationale for Piercing the Corporate Veil to Enhance the Accountability of the Municipal Manager in Mahikeng Local Municipality |
| title_fullStr | The Rationale for Piercing the Corporate Veil to Enhance the Accountability of the Municipal Manager in Mahikeng Local Municipality |
| title_full_unstemmed | The Rationale for Piercing the Corporate Veil to Enhance the Accountability of the Municipal Manager in Mahikeng Local Municipality |
| title_short | The Rationale for Piercing the Corporate Veil to Enhance the Accountability of the Municipal Manager in Mahikeng Local Municipality |
| title_sort | rationale for piercing the corporate veil to enhance the accountability of the municipal manager in mahikeng local municipality |
| topic | accountability transparency piercing the corporate veil municipal manager legal personality |
| url | https://www.adjuris.ro/revista/articole/An12nr2/6.%20Chitimira,%20Sethunyane,%20Magau.pdf |
| work_keys_str_mv | AT howardchitimira therationaleforpiercingthecorporateveiltoenhancetheaccountabilityofthemunicipalmanagerinmahikenglocalmunicipality AT tumelosethunyane therationaleforpiercingthecorporateveiltoenhancetheaccountabilityofthemunicipalmanagerinmahikenglocalmunicipality AT phemelomagau therationaleforpiercingthecorporateveiltoenhancetheaccountabilityofthemunicipalmanagerinmahikenglocalmunicipality AT howardchitimira rationaleforpiercingthecorporateveiltoenhancetheaccountabilityofthemunicipalmanagerinmahikenglocalmunicipality AT tumelosethunyane rationaleforpiercingthecorporateveiltoenhancetheaccountabilityofthemunicipalmanagerinmahikenglocalmunicipality AT phemelomagau rationaleforpiercingthecorporateveiltoenhancetheaccountabilityofthemunicipalmanagerinmahikenglocalmunicipality |