What does the term "reverse piercing" reference in regard to a corporation and its shareholders?
A) Holding a corporation liable for debts of a shareholder
B) Holding a shareholder liable for debts of a corporation
C) Holding a corporation liable for debts of a shareholder and holding a shareholder liable for debts of a corporation
D) Holding a corporation liable for debts of a shareholder,holding a shareholder liable for debts of a corporation,and holding officers liable for debts of a corporation.

Question

Quizplus · Accepted Answer

Reverse piercing refers to holding a corporation liable for the debts of its shareholders, which is the opposite of the more common "piercing the corporate veil" where shareholders are held liable for the corporation's debts.

What Does the Term "Reverse Piercing" Reference in Regard to a Corporation