Vincenzo Mogavero on Corporate Veil Piercing in the New Jersey Law Journal

Vincenzo Mogavero on Corporate Veil Piercing in the New Jersey Law Journal

In theory, corporate subsidiaries and affiliates are separate and distinct. When these entities run as free-standing, self-governed organizations manned by their own employees that operate as a going concern such that the entities have a separate existence from their corporate parent, the law respects the corporate form. However, when corporations create a pyramid of empty shells to shield the only viable entity from the consequences of their own misconduct, the law provides a very powerful, albeit cautiously invoked remedy: corporate veil piercing.

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