Corporate Veil

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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 ?
We can have anti-tax haven legislation and authorities should pierce the corporate veils keeping every entity documented.
Formally recognizing veil piercing ends more than a decade of uncertainty over whether Chinese judges can pierce corporate veils.
The concept of piercing the corporate veil is a longstanding feature of the corporate law of capitalist economies.
The notion of piercing the corporate veil did not exist formally in Chinese statutory law prior to 2006.
4) Unless one of these steps is taken, creditors, investors, and shareholders alike will face continued uncertainty about when courts can pierce a corporate veil.
Canny, The Capital Shareholder's Ultimate Calamity: Pierced Corporate Veils and Shareholder Liability in the District of Columbia, Maryland, and Virginia, 37 CATH.
And it was not until less than a year ago that China recognized one of the most important (and most often litigated) corporate law doctrines: piercing the corporate veil.
Judge Cardozo once famously described the concept of piercing the corporate veil as being "enveloped in the mists of metaphor.
This Part also defines piercing the corporate veil and discusses its application in U.
However, corporate veils can be pierced (and managers and stockholders held responsible for debts) on isolated issues, like the trust fund portion of payroll taxes.
McCarty also sought to reform the stock purchase agreement in numerous respects, and to pierce the corporate veils of the Company and AMS Manufacturing in order to hold them liable for any breach by Heartland of the promissory note and employment agreement between Heartland and Mr.
The jury found that the corporate veils of the Company and its subsidiaries should be pierced.

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