Contributed By Baker McKenzie S.A.S.
Piercing of the Corporate Veil
In Colombia, the piercing of the corporate veil has been developed by case law and seeks to identify the individuals or legal persons who are beneficiaries of the legal entity. However, this procedure must be ordered by a judge and is not common on a day-to-day basis.
The Colombian Commercial Code includes a provision whereby the assets of a trust negotiation cannot be pursued by the creditors, unless debts are prior to the constitution of the trust. The creditors of the beneficiary of the trust can only pursue the financial yields the assets report. The execution of a trust with fraud can be challenged by the interested creditors.
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