In unlimited company the members of the company are limited liability over the debts of the company. In a limited company the members of the company are responsible for contribution in paying the debts of the company. Shareholder limited liability of the company can help in lifting the veil of incorporation. If the director of the company that is also the share holder of the company agreed about paying the debts or obligations of the company in time of fraudulent acts and other situations like insolvency (Dine and Koutsias, 2013). Another situation can be present that can help in lifting the veil of incorporation. When the companies are in a group and are not treated as a single economic entity. It would happen when the structure of the group was a deception and has committed a fraud or crime. According the companies act of 2006 group of companies that are counted as one account can lift the veil. The case of Lee’s air farming can be viewed in this situation. The corporation was not a sham but a legitimate corporation. The company had legitimate purposes and functions that were followed. Mr. Lee was self employed in the corporation as he was the owner and everything was well documented in government records like tax deductions compensation, contributions etc. After his death his widow had all the documentations with her that helped her and lifted all the responsibilities from her. It is stated that Mr. Lee was a separate entity and his widow should be given due compensation.
Mr. Henry will be the director of the farming solutions so he will be responsible for fraudulent and wrongful acts that will happen. During these problems Mr. Henry will be held responsible for the acts of the employees and can lift the veil of incorporation. The veil can lift because of the public interest or in the case of national emergency.
Recommendation for Mr. Henry and Mark would be to perform the corporate and employee functions. They should maintain all records in government documentary. If any of them dies the rest of the family or the widow will be compensated because they have already completed the documentation.