The Shifting Sands Of Limited Liability Principles
June 21, 2010, 12:03 PM EDT
Law360, New York (June 21, 2010, 12:03 PM EDT) -- The corporate form is widely recognized as an efficient and desirable means of organizing businesses. Central to its appeal is the fact that a corporation is regarded as a legal entity, separate and distinct from its stockholders (whether corporations or individuals) and complete with separate and distinct liabilities and obligations.
It is bedrock corporate law in the U.S. that one company is not liable for the acts of its subsidiaries or other affiliated corporations. See, e.g., United States v. Bestfoods, 524 U.S. 51, 61 (1998). The...