pierce the corporate veil

Definition of "pierce the corporate veil"
  1. The process of holding an individual or management group responsible for the actions of a corporation when it's proven that the corporation is only a controlled front for those individuals. This usually occurs when the corporation is used to commit fraud, and regular corporate formalities such as issuing stock and having meetings have not protected it from liability
How to use "pierce the corporate veil" in a sentence
  1. To recover their losses, the plaintiffs sought to pierce the corporate veil and hold the CEOs directly responsible.
  2. He was liable for the corporate debt after the court decided to pierce the corporate veil.
  3. Realizing that the firm was just a front for fraudulent activity, they managed to pierce the corporate veil.

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