• Piercing the "Corporate Veil" - A Risk of Personal Liability for Shareholders of Corporations and Limited Liability Companies (German)
  • March 24, 2011 | Authors: Steven H. Thal; Florian von Eyb
  • Law Firm: Phillips Nizer LLP - New York Office
  • This article introduces the "piercing of the corporate veil" doctrine. Based on this doctrine, U.S. courts allow a plaintiff under specific circumstances to disregard and pierce through a corporation's or LLC's limited liability and hold the shareholders personally liable for the company's debt (of course usually in situations where the company is unable to pay), whether these shareholders are individual persons or parent companies. The article outlines the criteria that courts look at when deciding whether to allow a plaintiff to pierce the corporate veil and gives general advice to shareholders on how to avoid the risk of personal liability for their companies through veil piercing.