A company that is set up to continue the activity of a collapsed company may be liable for its debts

A supplier of a printer equipment distribution company sought to obligate to pay the debts of the company both the shareholder of the company and a new company such shareholder incorporated and is actually continuing the path of the original company that financially collapsed.
The Court held that the new company and the shareholder are liable for the debts of the original company that collapsed. A company is a separate legal entity from the shareholders and the debts of a company are its obligations only, and its shareholders or affiliates are not liable for them. "Piercing the corporate veil" may be made and a company's debt may be attributed to a shareholder when the use of the separate legal personality is done in a way that can defraud a person or deprive a creditor of the company; or in a manner that harms the purpose of the company and assumes unreasonable risk as to its ability to repay its debts; all provided that the shareholder was aware of such use or suspected it but did not check it, except if the shareholder was only negligent. In order for the corporate veil to be lifted between affiliated companies, it is necessary to show the existence of one business or economic unit or that a company is set up without financial justification and only to misuse the legal personality. Here the new company and the original company are the same companies, and the distinction between them is purely artificial - both are in the same field, both of the same holding, their names are the almost the same, both are located in the same place and use the same phone number and have similar customers and suppliers. Opening the new company is therefore a fraud of the creditors and therefore the new company owes the debts of the original company and so does the shareholder.