This foundational principle, crystallized in the landmark English case Salomon v. Salomon & Co. Ltd. (1897), ensures that the rights, liabilities, and obligations of a company are its own, independent of those who manage or own it. The separate legal entity doctrine confers numerous advantages—perpetual succession, limited liability, transferability of shares, and an independent pool of assets—which collectively encourage entrepreneurship, investment, and economic development. However, the very features that make incorporation attractive also carry the potential for misuse. When the corporate structure is used as a façade for wrongful conduct, courts and legislatures have developed mechanisms to disregard this separation and look beyond the corporate form. This exceptional judicial action is known as lifting or piercing the corporate veil.