One of the main attractions of the company as a business structure is the limited liability that it affords directors.Sometimes the Court will however 'lift the corporate veil', disregard the separate personality of the company, and hold directors personally liable for the actions of the company.In which of the following circumstances is the Court least likely to do this?
A) Where the corporate form is being used to avoid an existing duty.
B) Where the company is acting as the agent of the directors.
C) Where the company is unable to repay a business loan.
D) Where the insolvent trading provisions of the Corporations Act 2001 (Cth) apply.
Correct Answer:
Verified
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