A Company has its own existence and a shareholder cannot be held liable for the acts of the company even though he holds the entire share capital. This is the Doctrine of Corporate Veil or Veil of Corporate Personality
In Simple words, the company is a different person altogether from the shareholders who have formed it. The company has an independent corporate existence and the shareholders cannot be held liable for acts of the company even though they control the entire share capital of the company. This is known as corporate veil and in certain circumstances the courts are empowered to lift or pierce it by ignoring the company as an entity and making the persons such as members or managers personally liable for the debts of the company