Legal Updates

One cannot receive details regarding a bank account of whom he cannot pierce the corporate veil against

May 25, 2018
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An employee sought to receive bank statements of the person contended to have served as a manager in fact and beneficial owner of the employer company while filling his father's place after a medical condition worsened, and received company funds to his bank account.

The Labor Court rejected the motion and held that a person's privacy should be favored and his bank account should not be disclosed. The attribution of a company's debt to a shareholder by piercing the corporate veil will only be done in exceptional cases, such as using the corporate veil to deceive a person or deprive a creditor of the company. It was not proven that the manager in practice was the living spirit and controlling shareholder of the company, and whereas he is not a shareholder or director, he should not be attributed the debts of a company.