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Incident of Disregard of Legal Entity Under the New Brazilian Procedural Framework

By Fabio de Almeida Braga, Demarest Advogados

This article points out that in case the corporate purpose of the legal entity is distorted, deviating the company from its goal for acts deliberately performed by its members, officers and managers, or, further, if such individuals cause improperly a confusion between their own assets and legal entity’s, the abuse of corporate entity is acknowledged, with the legitimation of court intervention, establishing the effects on the private assets of members and officers, who become equally and jointly liable for company’s obligations.