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by JP1967 on December 2nd, 2003

JP1967

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What does it mean to "pierce the corporate veil"?

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  • by JP1967 on December 3rd, 2003

    JP1967

    Actually, this refers to prosecuting individuals within a corporation. Forming a corporation is often a way to protect the founders from personal liability, be it from debts or from lawsuits. However, if the law (SEC, FBI, whatever) is able to prosecute an individual within the corporation for actions they performed on behalf of the corporation, this is called "piercing the corporate veil."

    Comments

    • Spot on.

      Knute Sacks

      by Knute Sacks on December 10th, 2003

    • In addition to criminal prosecution, the phrase also relates to civil (i.e. tort and contract) liability

      Jackson Miller

      by Jackson Miller on March 2nd, 2004

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