1 lifting, piercing and sidestepping the corporate veil james wibberley, guildhall chambers & michelle di gioia, gardner leader 1 limited liability companies provide huge commercial benefits for businessmen, but even larger. Quizlet provides piercing corporate veil activities, flashcards and games start learning today for free. Closely related to the alter ego doctrine is the doctrine of joint enterprise liability or enterprise liability while piercing the corporate veil provides a mechanism for holding a shareholder (person or entity) liable for the debts of the corporation, joint enterprise liability provides a mechanism for holding a non-shareholder liable for the debts of a corporation.
This cle webinar will examine the latest case law trends regarding piercing the corporate veil across several states the panel will address the application of the doctrine to llcs and best practices for litigating piercing the corporate veil cases. Posts about doctrine of piercing the corporate veil written by julie caadan. 2 application to limited liability companies the doctrine of piercing the corporate veil applies to both corporations and limited liability companies.
This doctrine is known as the doctrine of “lifting the veil of incorporation” or “piercing the veil lifting the veil doctrine of “lifting the veil. 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 usually a corporation is treated as a separate legal person, which is solely responsible for the debts it incurs and the sole beneficiary of the credit it is owed.
The doctrine of piercing the corporate veil, developed under the principles of corporate law, may be applied to limited liability companies. Under the doctrine of piercing the corporate veil, the courts may decide not observe the separation of the corporate entity from its stockholders.
Yet the doctrine of piercing the corporate veil is routinely vilified by experts douglas c michael, to know a veil, 26 journal of corporation law 41. The doctrine of piercing the corporate veil is shrouded in misperception and confusion on the one hand, courts understand the fact that the corporate form is supposed to be a juridical entity with the characteristic of legal “personhood”.
Finding alter ego gives the court cause to pierce the corporate legal doctrine whereby the court finds a corporation lacks piercing the corporate veil. Lifting or piercing the veil is corporate law’s most widely used doctrine to decide when a shareholder or shareholders will be held liable for obligations of the corporation lifting the veil doctrine exists as a check on the principle that, in general, investor shareholders should not be held liable for the debts of their corporation beyond the value of their investment. Bainbridgedoc 6/20/2005 10:27 am 77 abolishing llc veil piercing stephen m bainbridge courts are now routinely applying the corporate law doctrine of veil piercing to limited liability companies (llcs).Download