Thin capitalization as motivation for lifting of the corporate veil: the crisis of stakeholders' liability and the social function of the firm.

• Grant number: 11/00626-1
• Support Opportunities: Scholarships in Brazil - Scientific Initiation
• Start date: April 01, 2011
• End date: March 31, 2012
• Field of knowledge: Applied Social Sciences - Law - Private Law
• Principal Investigator: Eduardo Tomasevicius Filho
• Grantee: Ricardo André Galendi Júnior
• Host Institution: Faculdade de Direito (FD). Universidade de São Paulo (USP). São Paulo , SP, Brazil

Abstract

This project is entitled "Thin capitalization as motivation for lifting of the corporate veil: the stakeholders' responsibility limitation crisis and the social function of the firm." The relevance of this paper derives from imprecision concerning the criteria applied to attest the thin capitalization of the company, in Brazilian law. Intending to find the foundation needed to study the last conceptions about corporate thin capitalization as motivation for lifting of the corporate veil, the doctrine about legal capital and disregard of legal entity will be reviewed. After that, a research into the influences of both the social function of the firm and the limitation crisis on the comprehension of thin capitalization will be developed. It is aimed to obtain, at the end of this research, guidelines to support Brazilian jurisdictional order to solve problems related to thin capitalization as motivation for lifting of the corporate veil.