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Reverse Piercing of the Corporate Veil Prohibited

by Roy, Christopher


Our Enforcing Money Judgments Research Guide (Table 9) has been updated to reflect Public Act 19-181, which eliminates Reverse Piercing of the Corporate Veil in Connecticut. In addition, the Public Act Summary states that "[t]his act sets specific conditions that must be met in granting a veil piercing claim to override limitations on a domestic entity interest holder’s liability in connection with the entity’s transactions. (Under the act, a 'domestic entity' is an entity whose internal affairs are governed by Connecticut law.) In doing so, the act generally codifies the 'instrumentality test,' one of two methods Connecticut courts use to determine whether to grant a veil-piercing claim." Below is revised table 9 in the Enforcing Money Judgments Research Guide.

Table 9: Enforcing Money Judgments