Gazette Case: Tailai affiliated-company commingling

Gazette Case: China Cinda Asset Management Chengdu Office v. Sichuan Tailai Decoration Engineering Co., Ltd. et al.

Where affiliated companies with overlapping ownership are established by the same investor and controlled by the same natural person, and that controller disregards their separate personalities by freely confusing assets and creditor-debtor relationships so that personnel and property boundaries cannot be distinguished, the companies may be treated as commingled and held jointly liable.

Holding

Where affiliated companies with overlapping ownership are established by the same investor and controlled by the same natural person, and that controller disregards their separate personalities by freely confusing assets and creditor-debtor relationships so that personnel and property boundaries cannot be distinguished, the companies may be treated as commingled and held jointly liable.

Issues

commingling among affiliated companiessingle controllermixing of assets and liabilities