/g/ explains limited liability

submitted by toakraka from pic8.co

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[–]toakraka[S] 1 insightful - 1 fun1 insightful - 0 fun2 insightful - 1 fun -  (0 children)

Context: Normally, if you successfully sue a company, but the company doesn't have enough money to pay damages to you, you can't keep going and sue the shareholders of the company for the remainder of the damages. This is known as "limited liability". However, in certain cases, the judge may find that, in reality, the company is controlled entirely by a single person (or a partnership of just a few people), and his claims that the company is a totally separate entity are fraudulent. In such a case, the judge may authorize you to "pierce the corporate veil" and enforce damages against the owner personally.