CORPORATE VEIL MEMORANDUM

Published 11 December 2019 by The Flores Group

INTRODUCTION
The general rules is that corporate form normally insulates shareholders, officers, and directors from liability for corporate obligations.1 However, when these individuals abuse the corporate privilege, courts will disregard the corporate fiction and hold them individually liable.2 Piercing the corporate veil is not itself a cause of action, but rather is only a remedy, a means of imposing liability on an underlying cause of action.3 Piercing the corporate veil refers to pierce the protection or shield that the company serves to its shareholders, officers, and directors.

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