’ In January 2019, the Ugandan Parliament passed the Human Rights (Enforcement) Act to give effect to Article 50(4) of the Constitution. This jurisprudence is important because the principles developed therein will be useful when courts are required to lift the corporate veil when dealing with economic crimes such as corruption and money laundering.Īrticle 50(4) of the Constitution provides that ‘Parliament shall make laws for the enforcement of the rights and freedoms under this Chapter. The purpose of this article is to highlight that jurisprudence. Courts have also dealt with the question of lifting the corporate veil in criminal matters. However, there is rich jurisprudence from Ugandan courts (especially in civil cases based, partly, on the Companies Act) on the meaning of the corporate veil and the circumstances in which it can be pieced/lifted. Since the coming into force of the Anti-Money Laundering Act, Ugandan courts have not yet invoked it to lift the corporate veil. The Companies Act and the Anti-Money Laundering Act provide for circumstances in which the corporate veil can be lifted. However, case law from Uganda shows that there have been instances in which companies have been used or attempted to be used by their directors to commit economic crimes such as embezzlement. This means, inter alia, that as a general rule, the actions or omissions of a company cannot be attributed to its directors, shareholders or employees.
This is called corporate personality or corporate veil. In Uganda a company is a separate legal entity from its directors, shareholders or employees.
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