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.

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References in periodicals archive

Part II provides a brief overview of the doctrine of piercing the corporate veil. Part III argues that the Supreme Court's treatment of corporations as associations of citizens is a radical departure from the Court's treatment of corporations in all other areas of the law.

WHAT CORPORATE VEIL?

Piercing the corporate veil. New York, NY: Clark Boardman Callaghan.

PIERCING THE VEIL: TRADITIONAL CORPORATIONS VERSUS LIMITED LIABILITY COMPANIES

consideration would be especially helpful in piercing the corporate veil

PIERCING THE TRANSNATIONAL MARITIME VEIL: WHAT LAW APPLIES IN RULE B ATTACHMENT PROCEEDINGS?

Because the standard for piercing the corporate veil varies by state, (55) balancing tests are frequently used instead of bright-line rules.

Imputed liability: How to determine when parent companies should be held liable for the patent infringements of their subsidiary companies

The early recognized grounds for piercing the corporate veil were agency (28) and use of the corporate structure for an improper purpose.

Piercing the corporate veil in the Canadian common law courts: an empirical study

(99) Indeed, the court in such a case would be committing the very sort of casual (and improper) failure to respect the integrity of the corporate form and formalities that, when committed by shareholders of closely held companies, is occasionally criticized by the courts and cited as justification for piercing the corporate veil.

Piercing the corporate veil reframed as evasion and concealment

(1) In general, piercing the corporate veil means that the separate legal personality of the corporation--the so-called veil--is disregarded.

The ideals and reality of a legal transplant - the veil-piercing doctrine in China

piercing the corporate veil and vicarious liability are ex post

Class AMPs: withdrawing the corporate veil on judgment proofing

In the case in which a Canadian parent incorporates a foreign subsidiary with the intent of using the subsidiary to commit corrupt acts abroad and in the hope of insulating itself from liability under the CFPOA, a Canadian court could be justified in piercing the corporate veil to hold the parent directly liable for the ensuing corrupt acts of the subsidiary.

Corporate liability for foreign corrupt practices under Canadian Law

The court was justified in piercing the corporate veil and injuncting the company because the company was being used to defeat Mr Home's pre-existing obligations.

The corporate veil: an ingenious device

Lawyers refer to this as piercing the corporate veil and it is rarely accomplished because each corporation is expected to stand on its own in all legal proceedings.

The Subsidiary: certain words can be very specific