What does it mean when a court says it is "lifting the veil of incorporation?"

Answer by  cynosure (376)

"Piercing the corporate veil" is when a court determines that the corporation is nothing more than an alter ego for its owners or other fiduciaries. When the veil is "lifted", creditors of or complainants against the corporation may seek recompense from the owner/fiduciary - normally disallowed by corporate law.

Answer by  chuck333 (84)

When a cour says it is lifting the veil of incorporation it means it is making a legal decision about the owner of a business. By lifting the veil the court is revealing information to the public.