Piercing the Corporate veil

Question 1

Types of piercing

Answer 1

classic, texas, LLC, enterprise liability, liability of limited partners, reverse

Question 2

Classic piercing

Answer 2

vertical- go through the entity to get to the owner

Question 3

piercing in texas

Answer 3

2.21A- eliminates corproate veil– simple (1) need actual fraud— dishonest and intent to deceive

Question 4

enterprise liability

Answer 4

horizontal- going through the enterprise to get to the sister enterprises

Question 5

reverse piercing

Answer 5

going through owners to get to entities

Question 6

doctrine of veil piercing

Answer 6

left to judgement of courts on what is fair, concept is ficiton of law and should be disregarded when it would produce injustice.

Question 7

two prong test

Answer 7

A. Ignored the formalities of the corporation

B. Results an injustice

Question 8

limited partnerships

Answer 8

A. Generally unlimited Liability
1. Create and entity to act as general partner, but limited partners do the amanging. That way the general partner entity bears the liability and limited liability partners don’t.