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If you own a corporation and adhere to the formalities of having a company (maintaining corporate minutes, separate bookkeeping and accounting, etc.) then the company exists as its own entity. In this case, if a case is brought against the corporation as an entity, the private resources of the owner are shielded.
However, let's say that you routinely drive to the grocery store and buy all of your groceries using the company checking account.
In that case you've pierced the veil and ceased behaving according to the rules of being a corporation---so, you no longer enjoy the protections of being a corporation. If the corporation were to be sued, then your personal assets could then be part of the judgment against you.
I qualify this by saying that I am a business owner but not an attorney, but this is my very basic understanding of this matter. I hope my crude explanation assists you in some way.
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The doctrines of-Lifting Piercing the Corporate Veil Ultra Vires?
Explain and illustrate the doctrines of Liftin/ Piercing the corporate Veil Ultra Vires
What are the release dates for Lifting the Veil Afghanistan Unveiled - 2007?
Lifting the Veil Afghanistan Unveiled - 2007 was released on: USA: 15 September 2007
What is the procedure for an executive for lifting a corporate veil?
Executives don't nessasarilarly have any corporate authority (authority to bind the corp). Officers of the corporation in pursuit of their duties to it do. Anything the executive does personnally, or signs for personally not as an officer of the corporation, doesn't have corporate protection...it is done indivdually. Anything the corporation does for itself has corporate protection.
How do you use Piercing the corporate veil in a sentence?
the brides veil is drggind down on the foor
What are the release dates for Dallas - 2012 Lifting the Veil 3-4?
Dallas - 2012 Lifting the Veil 3-4 was released on: USA: 17 March 2014
What do you mean by corporate veil?
A legal concept that separates the personality of a corporation from the personalities of its shareholders, and protects them from being personally liable for the company's debts and other obligations. This protection is not ironclad or impenetrable. Where a court determines that a company's business was not conducted in accordance with the provisions of corporate legislation (or that it was just a facade for illegal activities) it may hold the shareholders personally liable for the company's obligations under the legal concept of lifting the corporate veil.
Do Piercing the corporate veil means revealing to shareholders the internal rules of corporate management?
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What has the author English Bradshaw written?
English Bradshaw has written: 'Lifting the Veil'
What legal factors determine when a court may pierce the corporate veil in Texas?
In Texas, a court may pierce the corporate veil if there is evidence of fraud, improper conduct, or if the corporation is being used to evade legal obligations.
How can a plaintiff pierce the corporate veil to hold individual shareholders personally liable for the debts of a corporation?
A plaintiff can pierce the corporate veil by showing that the shareholders abused the corporate structure for personal gain or to commit fraud, making it unfair to shield them from liability. This can be done by proving factors such as commingling of assets, undercapitalization, or lack of corporate formalities.
How hard is it to pierce the corporate veil in legal cases involving corporate liability?
Piercing the corporate veil in legal cases involving corporate liability is difficult because courts typically respect the separate legal entity of a corporation. To do so, plaintiffs must prove that the corporation was used improperly or fraudulently to avoid legal obligations.
What legal implications arise from piercing the corporate veil in cases of corporate misconduct?
Piercing the corporate veil in cases of corporate misconduct can lead to personal liability for company owners and shareholders. This means they may be held accountable for the company's actions and debts, even if the company is a separate legal entity. This can result in legal consequences such as financial penalties or loss of personal assets.
