Lifting of corporate Veil

Mr David and Mr CK are best friends . In year 2006 there start up the fruit import business . The business is going well when the get a contract to supply fruit to tesco  .  Without the knowledge of CK, Mr David try to make some secret profit by allocated some share in stock market  using the capital  of company . Unfortunately crisis happen in year 2007 and Mr David loss all the share . At the same time company need capital turnover .  Mr ck know the later when the debtor come to him .In this case whether a not Mr. Ck liable for the debt and loss cause by the Mr.David ? what are the legal action can Mr.CK take against him ?

The case  above same with the case" salomon V salomon ".According  to the company act 1965, company are separate legal entity that separate and distinct from its members and shareholder. In this case , Mr ck are not liable for the lose cause by Mr.David . Mr CK can bring the case to the court and apply injunction against Mr.David  to freeze all asset belong to him   .