Academic

Smith on Piercing the Corporate Veil

By Lawrence Solum

Douglas G. Smith (George Mason University School of Law) has posted Piercing the Corporate Veil in Regulated Industries on SSRN. Here is the abstract:

This article addresses the theoretical justifications for limited liability and the exceptions to limited liability under the various veil piercing doctrines. In particular, the article considers whether veil piercing is appropriate in regulated industries such as insurance and banking, which have comprehensive regulatory structures that are designed to prevent much of the conduct that veil piercing is designed to remedy. The article concludes that veil piercing is not justified under such circumstances because the economic costs outweigh any benefits.

Full post as published by Legal Theory Blog on February 06, 2008 (boomark / email).