Business, Legal & Accounting Glossary
v. to prove that a corporation exists merely as a completely controlled front (alter ego) for an individual or management group, so that in a lawsuit the individual defendants can be held responsible (liable) for damages for actions of the corporation.
If a corporation has issued stock and held regular meetings of shareholders and directors, it is unlikely a judge will “pierce” the veil and limit the liability to the corporation, unless there is proof that the corporation was created to accomplish a fraud on those dealing with it.
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This glossary post was last updated: 30th April, 2020 | 0 Views.