piercing the corporate veil

(redirected from Lifting the corporate veil)
Also found in: Legal.

piercing the corporate veil

A theory used to reach the assets of individual shareholders when there is a judgment against a corporation but the corporation has no assets to satisfy the judgment. In general, if the shareholders operated a business in complete disregard of the corporate form,meaning they never had shareholder meetings,never voted on anything,never used the corporate name on stationary or paperwork, commingled personal funds and corporate funds, and generally behaved as if the corporation did not exist, then a court will impose personal liability for corporate debts.

References in periodicals archive ?
judge were insufficient to justify lifting the corporate veil.
2010); Huang, supra note 8, at 758; see also Lynn Gallagher & Peter Ziegler, Lifting the Corporate Veil in the Pursuit of Justice, J.
He added: "In those circumstances, a prosecution would be not just in respect of the company but we would look at the possibility of lifting the corporate veil and charging the directors of the company.