| gen. |
pierce the corporate veil (where a shareholder or director of a company may be held liable (=legally responsible) for a company's debts or liabilities despite the general principle that a company's shareholders and employees are immune from civil lawsuits filed against it: Judge Gordon ordered that the corporate veil be pierced on a list of Palmer's companies so they could be properly investigated. Other ⃝ lift the corporate veil Phrase Bank ⃝ The question of whether to pierce the corporate veil is one of fact. ⃝ The veil may not be pierced absent a showing of improper conduct. ⃝ Seeking to pierce the corporate veil, he asked the court to declare the company's directors liable for the debt. Additional Notes ⃝ If a corporation has issued stock and held regular meetings of shareholders and directors, it is unlikely a judge will pierce the corporate veil unless there is proof that the corporation was created to accomplish a fraud on those dealing with it. TED Alexander Demidov) |
