However, the new Supreme Court’s approach (the SBE theory) is more conservative than the previous Court of Appeals’ approach (the AOI theory).įor the SBE theory to apply, there must be “vidence of abuse, or … injustice and inequity.
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The SBE theory is comparable to the amalgamation of interest theory (“AOI theory”). In Pertuis, the South Carolina Supreme Court recognized the SBE theory for the first time. The South Carolina Court of Appeals has considered the “amalgamation” of two or more corporations several times.
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In other words, a court can pierce the corporate veil of two or more affiliated corporations and treat them as one (1) corporation, which can benefit a plaintiff-creditor. The single business enterprise theory (“SBE theory”) “is an equitable doctrine applied to reflect partnership-type liability principles when corporations integrate their resources and operation to achieve a common business purpose.” (William Meade Fletcher et al., Fletcher Cyclopedia of the Law of Corporations §43 (perm. This new precedent will make it more difficult to pierce the veil of brother-sister corporations. All five judges agreed: “e formally recognize today single business enterprise theory.” Id. 640, 817 S.E.2d 273 (2018), the South Carolina Supreme Court has provided important new guidance in the area of “piercing the veil” of brother-sister corporations. Public Services, Infrastructure, Transportation.