Definition from Nolo’s Plain-English Law Dictionary
A judicial doctrine that allows a plaintiff to hold otherwise immune corporate shareholders personally liable for the debts of or damages caused by a corporation under their control. The corporate veil can be pierced when shareholders have acted intentionally and illegally, when the corporation has neglected corporate formalities, and/or when the corporation is found to be a mere alter ego of the shareholders (a shield set up to defraud creditors). This doctrine applies to limited liability companies as well. Also known as disregarding the corporate entity.
Definition provided by Nolo’s Plain-English Law Dictionary.
August 19, 2010, 5:21 pm