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Corporate Veil

Concept in the corpoate business world that protects stockholders from being liable for the debts of the business.
A simple way of understand this is that stockholders can ONLY lose what they invest; creditors of a business CANNOT go after the stockholders for the business's liabilities.

Basically a business can rack up a bunch of debt, go under, and not have pay the difference owed to creditors after liquidating.

This concept does NOT apply to family owned business AKA non-corporations.


See also: Significantly | Carpe noctem | Ram pam | Implied powers | What doesn’t kill you, makes you stronger

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