Connecticut Moves to Protect Business Owners and Investors
This article originally appeared in the September/October issue of CT Lawyer magazine and is reprinted with their permission.
This past session, the Connecticut General Assembly has adopted legislation to provide clarity and predictability to business owners and the investors regarding when their personal assets could be at risk because of the unpaid debts of a business entity in which they hold an interest. In enacting Public Act 19-181, the legislature has limited the situations in which the doctrine of piercing of the corporate veil can be used to hold a shareholder, member, or partner liable for a judgment against a corporation, LLC, partnership, or other business entity.
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