Piercing the Corporate Veil (Commercial Litigation)

Summary

This practice note discusses "piercing the corporate veil," a legal doctrine which refers to holding shareholders, owners, officers, and directors, and affiliated entities (i.e., parent corporations) liable for actions of a corporation. Piercing may occur where it can be proven that the company had no independent existence, meaning that such individual(s) were acting as the corporation's alter ego(s). This practice note will address, among other things, the standard(s) for piercing the corporate veil and best practices for avoiding its imposition.