ARTICLE · 08 DECEMBER 2014

Shielding Assets And The Corporate Veil

Lerners LLP

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An incorporated company is a separate, distinct legal person. The "corporate veil" is a term used to describe how incorporation can shield the personal assets of the individuals running the business as well as its owners.

CanadaCorporate/Commercial Law

Fred W. Tranquilli

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An incorporated company is a separate, distinct legal person. The "corporate veil" is a term used to describe how incorporation can shield the personal assets of the individuals running the business as well as its owners. Individuals frequently conduct business through numbered companies to avoid personal liability. The numbered company will be the legal person that holds title to the assets of the business. While the corporation as a legal entity was created to encourage business development and risk taking, the corporation has also been used to shelter personal assets from creditors or former spouses and to avoid personal liability for the individual's actions in operating the business.

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