Interrelation Between the Piercing the Corporate Veil and Limited Liability Principles in Corporate Law


  • Ana Kharaishvili


limited liability, piercing the veil, piercing, preconditions of piercing the veil, types of piercing, corporate veil, voluntary creditors, involuntary creditors.


The limited liability principle is one of the essential and, at the same time, most intensively discussed institutes of corporate law. The paper offers the analysis of this fundamental issue on a contextual level in system-comparative context and reveals its virtues and shortcomings in close connection with veil piercing doctrine. The liability and fate of the persons behind a juristic person, as an artificial formation created by natural persons (as a rule) on the basis of a fiction theory, has been and still is intensively discussed by legal systems of the antic world - Roman Law, Islamic Law and Italian Law of Medieval centuries on the one part and by almost every contemporary leading legal system on the other. Because of this very reason the paper provides the analysis of historical prerequisites, virtues and shortcomings, forms, preconditions, factors and challenges of practical use of these institutes in system-comparative context. All the foregoing will promote the correct practical application of characteristic for Georgian corporate law veil piercing, as an exc from limited liability rule.


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How to Cite

Kharaishvili, A. (2017). Interrelation Between the Piercing the Corporate Veil and Limited Liability Principles in Corporate Law. Journal of Law, (2). Retrieved from