Can anyone explain three factors that a court will use in determining whether to pierce the corporate veil?© BrainMass Inc. brainmass.com December 20, 2018, 10:59 am ad1c9bdddf
The following will enhance your knowledge regarding "piercing the corporate veil."
When a company forms an LLC or a Corporation, the individual(s) starting the business release themselves from liability for any company debt. If a court were to pierce the corporate veil, it would be done for the following reasons:
1) The company participated in fraudulent and/or wrongful actions. What does that mean? It means the company was ...
The solution discusses the three factors that a court will use in determining whether to pierce the corporate veil.