Assessing the Adequacy of the Companies Act of Tanzania in Addressing Corporate Veil Piercing: Towards Strengthening Corporate Accountability

This article critically examines the adequacy of the Companies Act of Tanzania in addressing the doctrine of corporate veil piercing, with particular focus on its implications for corporate accountability within group company structures. The study reveals that while the Act effectively upholds the principle of separate legal personality as the foundation of corporate existence, it lacks explicit provisions guiding courts and regulators on when and how to disregard this separateness in cases of fraud, abuse, or injustice. This legislative silence has resulted in inconsistent judicial application and limited deterrence against misuse of incorporation. Through doctrinal and comparative analysis drawing lessons from jurisdictions such as the United Kingdom, South Africa, and Kenya the article argues that Tanzania’s company law framework remains inadequate in preventing the manipulation of the corporate form to evade liability. It recommends the inclusion of express statutory provisions on veil piercing, recognition of group company liability, strengthened director accountability, and enhanced institutional oversight. The article concludes that comprehensive legal and institutional reforms are necessary to align Tanzania’s corporate regime with modern international standards and to ensure that incorporation operates not as a shield for wrongdoing, but as an instrument of justice, transparency, and responsible business conduct.