piercing the corporate veil

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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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The issue of press freedom stuck out as the SEC decision came after President Rodrigo Duterte warned in his State of the Nation Address in July that the administration would pierce the corporate veil of Rappler, a constant critic, to expose the American financing behind it.
In order to pierce the corporate veil and hold (Owner) liable for obligations of (form of business entity), (Claimant) must show that:
42) Courts differ by state regarding the specific factors taken into account when deciding whether to pierce the corporate veil, but most courts agree on an established "two-pronged" test: (1) "there must be 'such unity of interest and ownership that the separate personalities of the corporation and the individual no longer exist,'" and (2) "it must be true that, 'if the acts are treated as those of the corporation alone, an inequitable result will follow.
The protection of client secrecy is often stronger than authorities' ability to pierce the corporate veil to pursue an investigation.
was even possible for a court to pierce the corporate veil in the
This liability is imposed without the need to pierce the corporate veil of the LLC.
The court, however, can pierce the corporate veil and assess Individual liability where the owners have used the corporate identity to promote an injustice or fraud.
Due to limited resources, however, neither is likely to attempt to understand the corporate structure involved, much less pierce the corporate veil.
The legal principles developed and applied in common law courts in claims to pierce the corporate veil consist of a mishmash of indeterminate expressions that have been in a state of confusion since their inception.
1 This lack of clear principle is especially remarkable given that, to pierce the corporate veil, courts must essentially ignore or effectively overrule explicit and unambiguous provisions of corporate legislation.
There are few corporate law principles more intricate, and less settled, than that of when it is permissible to pierce the corporate veil.
Rather than pierce the corporate veil and assign liability to