Exceptions in limited liability of corporate entities owners – Experience from The United States of America for Vietnam practice
As far as corporate entities are concerned, the concept of limited liability has always been one of the bedrock principles. It is far from absolute, however, as there are exceptions to this otherwise concrete foundation. In other words, owners of a business protected by the veil of limited liability may be exposed to personal liability when certain special conditions are met. One prevalent exception to the bedrock principle of limited liability is “piercing the corporate veil” - a legal doctrine widely acknowledged and extensively developed in the United States of America. Thus, this article seeks to delve into a number of aspects of this peculiar rule from the perspective of the United States’ legal system before contrasting them with the enterprise law of Vietnam, culminating in brief recommendations for our law with regard to legal liabilities of legal entities and of their owners.