In order to impose liability upon a parent corporation for the obligations of a subsidiary corporation, important factors that Texas courts will consider include: Any business organization that provides limited liability to its owners is at risk of an offensive piercing of the corporate veil if the owners don’t take important to assure this protection from liability remains in place. However, this concept doesn’t apply just to corporations. The result is that individuals start getting named in lawsuits, in addition to the corporate entities they are affiliated with. When this happens, personal assets can be used to satisfy business debts and liabilities, not just corporate assets. “Piercing the corporate veil” is a legal term that means that the owners of a corporation lose the limited liability that having a corporation provides them, thus the piercing of the veil. We have sued corporate personnel in an individual capacity, sued corporate entities, and defended against claims of corporate veil. As attorneys who represent businesses on both sides of commercial disputes, we have had to offensively use corporate fiction arguments and defend against them. Particularly in commercial litigation and collections lawsuits in Texas, situations often arise when an attempt is made to “pierce the corporate veil”.
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