corporate veil |
Definition
Legal concept that separates the personality of a corporation from the personalities of its stockholders (shareholders), and protects them from being personally liable for the firm's debts and other obligations. This protection, however, is not ironclad or impenetrable. Where a court determines that a firm's business was not conducted in accordance with the provisions of corporate-legislation (or that it was just a façade for illegal activities) it may hold the stockholders personally liable for the firm's obligations under the legal concept of 'lifting (or piercing) the corporate veil.'
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corporate veil is in the Corporate, Commercial, & General Law subject.
corporate veil appears in the definitions of the following terms: lifting the veil, alter ego and piercing the corporate veil
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