Video

  • 7 minutes

What Are the Most Common Components of Veil Piercing Tests

 
In a veil piercing analysis you often see reference in the opinions to the concept of an alter ego for the corporation. This concept is only one part of a typical veil piercing analysis. Most jurisdictions also require wrongdoing to pierce the veil. It is also sometimes referred to as the “mere instrumentality” test, particularly in the parent/subsidiary context. What does alter ego mean? The shareholder or parent so dominates corporation/LLC that corporation/LLC is its “alter ego”. There is no independence of corporation from shareholder or member. There is no distinction between corporation/LLC and shareholder/member because shareholder/member does not respect/maintain separate corporate identity. Failure to maintain corporate form or treatment by shareholder/member of corporate/LLC assets as shareholder’s own assets, is an invitation for veil piercing.

In this video our speaker, Christopher C. Mason, reviews wrongful acts perpetrated through the corporation which causes damage and together makes limited liability inappropriate or inequitable under the circumstances.

Christopher C. Mason is a Partner in the Seattle law firm of Smyth & Mason, PLLC. He is committed to providing practical legal advice that can be effectively implemented. Mr. Mason has litigated and practiced in the area of commercial, employment and tort law throughout his 34-year career. He routinely forms and advises corporations and LLCs and their owners on compliance with applicable laws and defends entities and their owners against claims by creditors and tort victims.
Runtime: 7 minutes

Faculty

Christopher C. Mason

Christopher C. Mason

Smyth & Mason, PLLC