46 Pages Posted: 6 Feb 2008 Last revised: 15 Dec 2008
Date Written: February 1, 2008
This article addresses the theoretical justifications for limited liability and the exceptions to limited liability under the various veil piercing doctrines. In particular, the article considers whether veil piercing is appropriate in regulated industries such as insurance and banking, which have comprehensive regulatory structures that are designed to prevent much of the conduct that veil piercing is designed to remedy. The article concludes that veil piercing is not justified under such circumstances because the economic costs outweigh any benefits.
Keywords: piercing the corporate veil, limited liability, corporate veil, corporations
Suggested Citation: Suggested Citation
Smith, Douglas G., Piercing the Corporate Veil in Regulated Industries (February 1, 2008). Brigham Young University Law Review, Vol. 2008, No. 4, 2008; George Mason Law & Economics Research Paper No. 08-08. Available at SSRN: https://ssrn.com/abstract=1090027