Piercing the Corporate Veil
/ˈpɪərsɪŋ ðə ˈkɔːrpərət vil/
Definitions
- (n.) A judicial doctrine allowing courts to hold shareholders or parent companies personally liable for a corporation's debts or wrongful acts by disregarding the corporation’s separate legal entity.
The court decided to pierce the corporate veil to hold the owner personally responsible for the company's unpaid debts.
Related terms
See also
Commentary
Piercing the corporate veil is applied sparingly and requires clear evidence of misuse of the corporate form, such as fraud or inadequate capitalization.
This glossary is for general informational and educational purposes only. Definitions are jurisdiction-agnostic but reflect terminology and concepts primarily drawn from English and American legal traditions. Nothing herein constitutes legal advice or creates a lawyer-client relationship. Users should consult qualified counsel for advice on specific matters or jurisdictions.