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Piercing the Corporate Veil in Regulated Industries

46 Pages Posted: 6 Feb 2008 Last revised: 15 Dec 2008

Douglas G. Smith

Kirkland & Ellis LLP

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

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:

Douglas Geoffrey Smith (Contact Author)

Kirkland & Ellis LLP ( email )

300 North LaSalle
Chicago, IL 60654
312 862 3374 (Phone)

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