초록 열기/닫기 버튼
Piercing the corporate veil theory has been explicitly accepted by Korean courts since 1970's. Nonetheless, the requirements for its application are still confusing, which is a surprise considering the legal consequences of the theory in reality. In 2008, two Seoul High Court decisions that accepted the theory were vacated by the Korean Supreme Court. This is an indication that even courts do not have clear standards for the theory. In this writing, the author tries to simplify the theory by alligning all the cases about piercing the corporate veil into one simple theory: fraud/fraudulent transfer. Insufficient capital, failure to comply with corporate rules, control, and intermingling assets can be explained as diverse modality of fraud on the capability of the corporate entity to fulfill its obligations under the contract. In the case of tort claimants, the social benefit of the limited liability should be balanced with the cost of the society pertaining to the piercing.
키워드열기/닫기 버튼
piercing corporate veil, fraudulent conveyance, corporate shell, abusive incorporation, undercapitalization
