CT HB07340

Establishes strict requirements for piercing the corporate veil to hold interest holders personally liable for a domestic entity's debts, requiring courts to find by preponderance of evidence that the holder exerted complete domination and control, used that control to commit fraud or intentional wrongs, and that control proximately caused injury or loss.

Requires courts to consider nine specific factors when determining if complete domination and control existed, including adequate capitalization, asset transfers without business purpose, overlapping management, commingled funds, arm's-length transactions, separate legal entity treatment, and insolvency caused by the interest holder.

Places the burden of proof on the person seeking to hold an interest holder responsible for the entity's debts, obligations, or liabilities.

Prohibits the failure to observe corporate formalities alone from being grounds for imposing personal liability on interest holders through veil piercing doctrines.

Eliminates reverse veil piercing by prohibiting domestic entities from being held responsible for debts, obligations, or liabilities of their interest holders under any reverse veil piercing doctrine, claim, or remedy.