Courts are likely to pierce the veil of corporations which do not attend to corporate formalities, which include

  • issuing stock certificates
  • holding meetings
  • electing officers
  • documenting loans and other transactions

Failure to observe formalities may indicate an impermissible intermixture of affairs or may indicate the use of a corporation as a "mere instrumentality." Usually, when corporate formalities are found to have been ignored, the courts require at least one other independent ground for piercing the corporate veil.

relevant cases

  • brunswick corp. v. waxman
  • scott graphics inc. v. mahaney

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