parent nodes: corporation law | limited liability | piercing the corporate veil | Walkovszky v Carlton
enterprise liability
A theory of enterprise liability treats multiple corporations as a single legal entity.
An enterprise liability plaintiff must show that the separate identities of different corporations were not respected.
The arguments for piercing the corporate veil based off encouraging diversification are less persuasive in enterprise liability actions. Furthermore, complex institutional designs can create value in themselves, and enterprise liability theories can discourage such design. However, setting up multiple corporations can effectively offload a firm's externalities.
See also piercing the corporate veil.