Both the reverse piercing of the corporate veil and the classical doctrine of piercing the corporate veil are the phenomena that derived from the limited liability doctrine and are designed as tools that are supposed to smooth the extreme manifestations of the limited liability. Nowadays, in academic society there is still little consensus even about the efficiency of the classical veil piercing doctrine, despite a lot of research dedicated to this issue. As for the reverse piercing of the corporate veil, this phenomenon, in comparison with the classical doctrine, turned far less frequently to be an object of research and still remains the sphere that requires thorough research and analysis on a much larger scale.
The goal of this paper is to provide a comprehensive analysis of the current state of the reverse piercing of the corporate veil. In the first part of the article, we will attempt to define the nature of the reverse piercing and make a brief comparison of the classical veil piercing doctrine and the reverse piercing. In the second part, we will carry out the economic analysis of the reverse piercing of the corporate veil.
Amirian, Ivan, Reverse Piercing of the Corporate Veil: The Nature and the Economic Analysis (February 8, 2022).