Penetrate corporate veil
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Piercing the corporate veil or lifting the corporate veil is a legal decision to treat the rights or duties of a corporation as the rights or liabilities of its shareholders.
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2 Mar Many of you have heard of the term “pierce the corporate veil” but haven't thought any more about it. This blog post will discuss the five most.
Piercing the corporate veil
Description:According to a case at the Court of Appeal, Adams v Cape Industries plc , the only true "veil piercing" may take place when a company is set up for fraudulent purposes, or where it is established to avoid an existing obligation. Cavaney , 56 Cal. Similarly, in Gencor v Dalby , [20] the tentative suggestion was made that the corporate veil was being lifted where the company was the "alter ego" of the defendant. Third Avenue Railway , N. In determining whether or not the corporate veil may be pierced, the courts are required to use the laws of the corporation's home state.
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