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ARTICLE · 06 APRIL 2022

Lifting the corporate veil

Stacks Law Firm
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Discussion about the corporate veil including its purpose & what it means to pierce it.

AustraliaCorporate/Commercial Law
Geoff Baldwin
Geoff Baldwin
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The term "corporate veil" is a legal phrase that refers to a company being treated by the law as a separate entity to its owners.

The corporate veil enables companies to conduct business activities such as buying and selling property or assets, taking legal action, acquiring debt and signing contracts.

What is the purpose of the corporate veil?

Over the course of history, companies have had to balance two competing interests: encouraging business growth while shielding individuals from undue possible damage arising from taking legitimate, calculated business risks.

The corporate veil is in place to protect business owners by limiting the extent to which they can be held personally liable for any debts or legal troubles encountered by the business.

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