Legal Blog

Alter Ego – Corporate Veil

Mitchell v. Lewis 2016 Ont CA

Pleadings motion. Although a corporate veil can be pierced in cases involving sham corporations, that remedy is not limited to sham corporations (i.e. incorporated for an illegal, fraudulent, or improper purpose); it can also be pierced if, when incorporated, those in control expressly direct wrongful things to be done. The courts will disregard a separate legal personality of a corporate entity if it is completely dominated and controlled and being used as a shield for fraudulent or improper conduct.

Written by Jonathan Speigel Jonathan Speigel, the founding partner of Speigel Nichols Fox LLP, leads the litigation and construction practices.