Lliability for corporate obligations


A big advantage of corporate existence is the limited liability protecting individuals from liability for corporate obligations. But Courts will look at the legitimacy of corporate existence and ask if the limited liability protection should be sustained or whether the corporate veil should be pierced. What factors will lead a Court to pierce the Corporate veil? In end of Chapter case 37.12, should the corporate veil be pierced? Why or why not?

Answer should be about 5-10 sentences.

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Accounting Basics: Lliability for corporate obligations
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