Piercing the Corporate Veil of Shareholder in German, US and Georgian Legal Doctrine
Keywords:
Piercing the Corporate Veil, Limited Liability, Separate Personality, Corporation, Undercapitalisation, Disregarding the Corporate Formalities, Commingling of Assets, Konzern Law.Abstract
The aim of the present article is to study the grounds and judicial practices of piercing the corporate veil in Germany and the United States, and to present the flaws and problems of the present doctrine in Georgia, while providing solutions and recommendations regarding respective issue.
The article generally discusses piercing the corporate veil as a concept, which focuses on the legal and economic approach of limited liability. Afterwards, it outlines positive and negative economic and legal dichotomy of limited liability. The article examines the forms of piercing the corporate veil in the US and German law doctrines, types of creditors, the main preconditions for the use of the doctrine and related judicial practice. Moreover, article compares and reviews the legislative regulation, its historical development and judicial practice of piercing the corporate veil in Georgia.
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