A recent decision by the Ohio Court of Appeals (Second District) held that the City of Springfield, Ohio was entitled to “pierce the corporate veil” of the defendant corporation in order to reach the shareholder’s assets. The court further held that transfers totaling about $900,000 to its shareholder (proceeds from the corporation’s sale of real
Ohio Court of Appeals Provides Guidance About “Piercing the Corporate Veil”
The Ohio Court of Appeals (10th District, Franklin County) recently provided some very specific guidance about "piercing the corproate veil" in Ohio. The case is Lind Stoneworks, Ltd. v. Top Surface, Inc., 194 Ohio App.3d 98 (10th District 2011).
The trial court held a corporation and its sole owner liable for a corporate debt.
Piercing the Corporate Veil
Corporations and limited liability companies (LLCs) provide significant liability protection to their owners. Shareholders of corporations and members of limited liability companies generally are not responsible for debts of the corporation or LLC. A recent Ohio case, however, serves as a reminder that creditors may attempt to "pierce the corporate veil" and hold an owner