Kak
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This is a pretty good article on the matter. For the most part, a corporation protects you from liability. It however is not a license to screw off with no repercussions.
I flat out suggest business bankruptcy to people who have a big hole to dig out of. I would not want to spend years with growth throttled just to pay off bad debt. It is the law as written. A tool you pay for that is baked in to your interest rate.
It is always looked at like business suicide, but a lot of large companies seek those protections and come back stronger.
Lifting of the Corporate Veil Essay
From the juristic point of view, a company is a legal person distinct from its members [Salomon v. Salomon and Co. Ltd. (1897) A.C 22]. This principle may be referred to as the ‘Veil of incorporation’. The courts in general consider themselves bound by this principle.
www.lawteacher.net
I flat out suggest business bankruptcy to people who have a big hole to dig out of. I would not want to spend years with growth throttled just to pay off bad debt. It is the law as written. A tool you pay for that is baked in to your interest rate.
It is always looked at like business suicide, but a lot of large companies seek those protections and come back stronger.
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