When corporate veil is lifted?

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I know that corporate veil is something like a distinction between the company and its owners. Under what circumstances is the veil lifted or pierced?

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score 0 · Answer 1 · 2012-12-02T16:55:40+00:00

The corporate veil is lifted when there is suspicion that the the fact that there is a limited liability company is a fraud or when there is only one shareholder or when a company was created with the only objective to take advantage of the corporate veil. There are quite a few cases where the corporate veil has been pierced but its the most common scenario.