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Example of Piercing the Corporate Veil

Piercing the corporate veil refers to holding liable company directors or shareholders for the actions of a company. Usually, a company is a discreet legal entity, in effect a legal 'person'. In theory, based on this separate legal entity, a company is the responsible party for actions taken in its name. In practice, that apportionment of liabilities doesn't work, nor is it reasonable to assume that a purely hypothetical legal 'person' can commit fraud, etc. Courts can deem a person or persons as responsible parties, rather than the company, for legal issues.

Examples of Piercing the Corporate Veil:

Enron
World Comm
Madoff scandal
http://en.wikipedia.org/wiki/Piercing_the_corporate_veil
http://www.cs.cmu.edu/~dst/Cowen/essays/corporate.html
http://home.uchicago.edu/~jmellis/piercing%20the%20corporate%20veil.html