Law Commons^™

The Doctrine Of Veil-Piercing Liability In Poland And Selected Countries: A Comparative Law Study, Mariusz Fras

Journal of Civil Law Studies

The separation of a company from its members, based on legal personality, is recognized as one of the fundamental principles of corporate law. It expresses the legal distinction between the two entities. A consequence of the separateness principle is that members are not liable for the debts of their companies, and companies cannot be held liable for the debts of their members. However, such consequences of the principle of mutual autonomy of companies and their members are in sharp contrast with commercial reality, in which intertwined corporate groups operate as a single economic entity. In market transactions, a subsidiary often …