LLCS AND VEIL-PIERCING

By , August 2, 2018 4:14 pm

Below is a cite to an article about LLCs and veil piercing.

51 Creighton L. Rev. 513
Creighton Law Review
June, 2018
Article
Daniel Buchholz
Copyright © 2018 by Creighton University; Daniel Buchholz

LIMITED LIABILITY COMPANIES AND VOLUNTARY CREDITORS: REEXAMINING THE ABOLISHMENT OF VEIL PIERCING

Here is the text of the conclusion of the article:

CONCLUSION

While veil piercing may be applied incoherently and haphazardly, there may be predictable rationales courts use to pierce the veil. Nonetheless, veil piercing’s application and rationales for voluntary LLC creditors contradict both the DLLCA (and similar statutes that pattern the DLLCA) and LLC law in general. This Article demonstrates that the DLLCA grants voluntary LLC creditors numerous opportunities to protect themselves. In fact, permitting voluntary creditors to pierce the LLC veil may be inconsistent with the DLLCA and LLC common law, such as fiduciary duties. Accordingly, courts and legislatures should prevent any further LLC veil piercing by voluntary creditors.

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