What mean veil of incorporation?

Answer 1

A company once incorporated becomes a legal personality, a juristic entity, separate and distinct from its members and shareholders and capable of having its own rights, duties and obligation and can sue or be sued in its own name.

Answer 2

Incorporation is a way of limiting the liability of the individuals that own a corporation. The owner doesn't get sued, the corporation does. This protects a business owner from loosing their home and personal assets if someone sues the business. In some cases, the 'veil' that protects the ower(s) from liability can be removed, and the owners can be enjoined into the law suit. Such occurances happen when a corporation is not funded with enough assets to balance its debts and liabilities. Given the rather bad experiences of the last decade (such as Enron) it is easier to hold corporate officers responsible for their actions then it was in the past.