What is the current state of the law in Canada on piercing the corporate veil?
Alberta, Canada
The following excerpt is from Halpern Investments Ltd. v. Sovereign General Insurance Company, 2004 ABQB 865 (CanLII):
The starting point in this regard in Canada is Kosmopoulos v. Constitution Insurance Co. of Canada, 1987 CanLII 75 (SCC), [1987] 1 S.C.R. 2. In that case, Justice Wilson, writing for the majority, observed that the law on piercing the corporate veil followed no consistent principle. She stated the best that could be said was that the veil would be pierced where to leave it intact would yield a result “too flagrantly opposed to justice”.
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