Piercing the corporate veil for environmental torts in Mauritius: a comparative study

Abstract

Purpose

The corporate veil or veil of incorporation is a legal concept that separates the legal and juristic personality of a company from its members, directors and other stakeholders. Indeed, common law has provided for numerous circumstances in which the corporate veil of a company may be lifted, and courts rely on these case law precedents to determine the grounds for lifting the corporate veil. However, there is limited case law regarding environmental torts as a ground for lifting the veil of incorporation and there is no legal provision in Mauritius which recognises environmental crimes as an exception to corporate veil. Consequently, this paper aims to discuss the liability of decision-makers of a company in the case of corporate environmental wrongdoings and thereafter, to present a case for amending Mauritius laws to give recognition to environmental torts as a ground of lifting the corporate veil.

Design/methodology/approach

This paper has adopted the black-letter approach and the comparative research methodology. The laws of Mauritius on corporate veil will be compared to the related laws of the USA and Canada with the view of seeking recommendations for Mauritius, as these countries are known to have an extensive legal framework on environmental crimes as a ground to lift the corporate veil.

Findings

It is concluded that it is high time for Mauritius to adopt a separate manslaughter law that would incorporate crimes committed to the environment by corporate bodies as a ground for lifting the corporate veil and thereby attacking individual stakeholders concerned.

Originality/value

This study is among the first researches conducted in the field of environmental torts as a ground for lifting the corporate veil in Mauritius.

Citation

Beebeejaun, A. (2021), "Piercing the corporate veil for environmental torts in Mauritius: a comparative study", Journal of Financial Crime, Vol. 28 No. 4, pp. 1259-1274. https://doi.org/10.1108/JFC-09-2020-0184