Corporation Law: RCCP Title I Practice Q&A
Sec. 2. Corporation defined. Q: What is the Doctrine of Piercing the Veil of Corporate Fiction? A: The Doctrine of Piercing the Veil of Corporate Fiction allows the court to disregard the separate legal personality of a corporation when it is abused or used to justify wrong, protect fraud, or evade legal obligations. This doctrine treats the corporation and its principal as one legal entity in such cases. Q: Under what circumstances can the Doctrine of Piercing the Veil of Corporate Fiction be applied? A: The doctrine can be applied when corporate identity is used to defeat public convenience, justify wrong, protect fraud, or defend crime. It can also be invoked when a corporation is a mere alter ego or business conduit of a natural person or another corporation. Q: What is the difference between Traditional Veil-Piercing and Reverse Piercing? A: Traditional Veil-Piercing occurs when a court disregards the corporate entity to hold corporate insiders liable for corporate obligations. Re...