Piercing the Corporate Veil: Insights from a Recent Judgment and the Consumer Protection Act Piercing The Corporate Veil
Typically, shareholders and directors of a corporation are shielded from personal liability for the actions and debts of a corporation. However, there are certain situations in which the courts will “pierce the corporate veil,” rendering persons liable for corporate conduct.
A recent decision in Saberian v. Sakellaris (SC-21-7298) illustrates how the Consumer Protection Act, 2002 (CPA) can be used to pierce the corporate veil and prevent an individual from using a corporate entity to shield themselves from liability for their unfair business practices.
Background
The...