PIERCING THE CORPORATE VEIL Business & Marketing Term Paper (Term Paper Sample)

"THE CONCEPT OF PIERCING THE CORPORATE VEIL IS TROUBLESOME AND SHOULD BE ABOLISHED, ESPECIALLY IN CORPORATE GROUP"
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"The concept of piercing the corporate veil is troublesome and should be abolished, especially in corporate group"
A limited liability company hereafter (LLC) and a corporation stands outs as businesses that do not pass the liabilities or rights to the shareholders or owners. They are never held liable or responsible for the debts that the business is facing; however the court can uphold such a decision and make them liable (Ramsay & Noakes, 2001, p.251). This means the corporate or LLC is facing piercing the corporate veil. This means that the shareholders or owners are held personally liable for the debts of the business. For a struggling business the most adverse idea would be to pass the liabilities and debts of the business to the shareholders; this is because the business has not been beneficial or generating an income. It would be double burden for the shareholders, members and owners of such business to carry the liabilities of such companies. In this paper, there is a critical discussion of why of piercing the corporate veil is troublesome and should be abolished, especially in corporate group, with respect to relevant case law and statutory provision.
Corporate liability