Veil Peeking: The Corporation as a Nexus for Regulation
Journal: eYLS (Yale Law School)
Year: 2020

Business corporations exhibit a strong form of asset partitioning.The attribute of limited liability or entity shielding prevents corporate creditors from reaching shareholders' assets.The attribute of capital lock-in or strong entity shielding prevents shareholders and their creditors from reaching the corporation's assets.Scholars have argued that entity shielding is more important and fundamental to the rise of the firm than limited liability.See generally