Under Georgia law, a party attempting to pierce the corporate veil must show abuse of the corporate form by proving the disputed corporation is either:
- A mere instrumentality or alter ego of its individual members and shareholders; or.
- Failure to pierce this veil would result in fraud or injustice.
Moreover, who can pierce the corporate veil?
In general, creditors have no recourse against corporate shareholders, as long as formalities are satisfied. When, however, the corporation is fraudulently created to escape liability, then creditors may pierce the corporate veil.
Beside above, under what circumstances can the corporate veil be lifted? FRAUD OR IMPROPER CONDUCT– the most common ground when the courts lift the corporate veil is when the members of the company are indulged in fraudulent acts. The intention behind it is to find the real interests of the members. In such cases, the members cannot use Salomon principle to escape from the liability.
Considering this, is it hard to pierce the corporate veil?
This legal structure creates an entity separate from the individual. … It is expensive and difficult to pierce the corporate veil and get a judgment against the individual behind the company.
