What is the “Corporate Veil”?

When a business is incorporated, the shareholders have a certain amount of protection from personal liability. Thus, the shareholder’s personal assets are sheltered from legal financial responsibility. However, because a corporation is a formal business entity, certain rules must be followed to keep that “veil” of protection in place. When the corporate veil is pierced, the shareholders will be held personally liable if the corporation’s assets are insufficient.

 

10 Common Ways the Corporate Veil is Pierced

The courts have cited over eighty ways the corporate veil can be pierced. These ten  are the most common.

The courts have cited over eighty ways the corporate veil can be pierced. These ten  are the most common.

For more assistance or to ask an orange county business attorney specific questions about your business, please email contact The Law Office of Gale & Vallance at info@galeandvallance.com or (714) 634-1414.

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