The whole purpose of corporate formation is to shield oneself from personal liability. Bankruptcy courts firmly respect this shield where a trustee or a judgment creditor attempts veil piercing in bankruptcy pursuant to state law.
Piercing the corporate veil (“PCV”) is not to be pled as an independent cause of action; rather, it is a judicial doctrine[i] that is brought to the court’s attention in order to disregard the limited liability shield afforded to corporations and impose liability on the owner(s) of the company themselves, upon showing proof that the company is a ‘mere instrumentality’ (alter ego) of the shareholder and that it was formed or used by the shareholders for a fraudulent or misleading purpose.[ii] Under Florida Statute § 605.0503(7)(c), a member of a limited liability company may be subject to an alter ego liability on application to the court by a judgment creditor. [iii]
The Business Law Section's meetings will be separate from the Florida Bar's Winter Meetings in a different hotel. Hotel link coming soon.
Upcoming Programs
Make plans now to attend this exclusive two-day program, the premier conference for corporate, securities and M&A practitioners, in-house counsel, executives, and advisors who focus on the Middle Market.
