Piercing the Corporate Veil: J.L. Brock Builders, Inc. v. Dahlbeck
No Thumbnail Available
Ring, Gregory A.
INTRODUCTION|For the shareholder, one of the most attractive aspects of the corporation as a business entity is limited shareholder liability. When a corporation dissolves or files bankruptcy and creditors remain unpaid, shareholders can usually expect to lose only their investment in the corporation. For society, a corporation is a benefit in that it encourages capital investment, which in turn creates jobs in the corporation's home state. Therefore, there are public policy reasons for holding sacred the corporate form. However, courts often disregard the corporate entity "when the notion of legal entity is used to defeat public convenience, justify wrong, protect fraud, or defend crime." In disregarding the corporate entity, commonly called "piercing the corporate veil," courts often find a certain unity between the shareholder and the corporation. Courts use various terms such as "alter ego" and "instrumentality" in holding the individual share holder personally liable for the corporate debt owed to the plaintiff....
21 Creighton L. Rev. 621 (1987-1988)
Creighton University School of Law