Substitute for Raised H.B. No. 7340
Session Year 2019
AN ACT CONCERNING THE USE OF VEIL PIERCING TO DETERMINE THE PERSONAL RESPONSIBILITY OF AN INTEREST HOLDER OF A DOMESTIC ENTITY FOR THE DEBTS, OBLIGATIONS OR OTHER LIABILITIES OF SUCH ENTITY AND THE RESPONSIBILITY OF A DOMESTIC ENTITY FOR THE DEBTS, OBLIGATIONS OR OTHER LIABILITIES OF AN INTEREST HOLDER OF SUCH ENTITY.
To codify the common law use of the instrumentality test when making determinations as to (1) the liability of the shareholders of a corporation for the act or debts of the corporation, and (2) the liability of the members or managers of a limited liability company for the debts, obligations or other liability of the limited liability company.