Senate Judiciary Committee hears proponent testimony on bill to codify veil‑piercing limits

Senate Judiciary Committee members heard proponent testimony on substitute Senate Bill 146, which would codify Ohio common‑law standards for piercing the corporate veil and limit when individuals may be held personally liable for corporate actions.

Supporters told the committee the bill is intended to preserve the traditional judicial balance that treats corporations and similar business entities as separate legal persons while keeping personal liability available only in cases of fraud or other exceptional circumstances.

Greg Russell, partner at the law firm Voorhees, Saylor, Seymour and Peace and general counsel for the Ohio Oil and Gas Association, said the state’s recent enforcement efforts have sought to impose personal liability on individuals by alleging they “knew about or should have known” about violations and had the authority to prevent them. Russell warned that, “the…