Corporate Veil


Also found in: Legal, Wikipedia.

Corporate Veil

The legal separation of a corporation from its shareholders. That is, because of the corporate veil, shareholders are not responsible for paying the debts of the corporation (beyond the level of their own investment) and generally are not legally liable for any crimes the corporation might commit. While the corporate veil protects shareholders, it may be disregarded under certain circumstances, notably if a shareholder assisted the corporation in the commission of a crime. See also: Piercing the corporate veil.
References in periodicals archive ?
piercing the corporate veil and vicarious liability are ex post
This, however, is an odd time for the court to be granting special protections, since the circumstances that allow for piercing the corporate veil is generally regarded as abusing the corporate privilege, in other words, misconduct.
The decision in Hall contradicts prior Federal Circuit decisions, which found corporate executives could be liable for inducing infringement without any need to pierce the corporate veil.
The Court rejected that argument, finding insufficient evidence to "pierce the corporate veil," especially where, as here, the Government agreed that Kolon had observed the required corporate formalities.
There is no corporate veil to protect consolidated income statements and balance sheets.
When DoT ( department of telecome) raised queries about the eligibility of the company, you accusedC* knowing fully well that BPL Mobile Communications ( later renamed Loop Telecom) was fully owned/ controlled by Essar Group under a complex corporate veil created by you all, intentionally made false representation through your employees," the court said.
The Commissions said because of the clear legislative intent to pierce the corporate veil and reach agents who were shielded by limited liability, it is reasonable to conclude that Congress, if given the opportunity, would have explicitly included LLCs within the scope of section 110(c) as entities that shield their agents from personal liability.
As a shareholder I'd be safe behind that corporate veil, the limitation in limited liability whereby the company is liable for its debts, not me as its owner.
Will the CCI go behind the corporate veil and declare certain takeovers as kosher and some not so?
4) It is difficult, if not impossible, to give a precise approach to all situations in which the corporate veil may be pierced.
Ironically, The Register-Guard had no problem piercing the corporate veil to talk directly to Pinto about the case.
If someone sues your corporation for damages or debt that far exceed the corporation's assets, then their lawyer is probably going to try to find a legal basis to push aside the protection and pierce the corporate veil.

Full browser ?