Reference Case: Metal Company v. A Trading Company, B Trading Company, et al.
In a 2026 case release on the Jiangsu Courts website, the Kunshan People's Court found horizontal veil piercing appropriate because three companies under one controller freely switched delivery-note and invoice names while the same team continued to place orders, reconcile accounts, receive goods, and use the steel. Two of the companies had no real premises, staff, or payment capacity and functioned as shells. The court therefore held the affiliated companies jointly liable, and also imposed liability on the sole shareholder of the one-person company for failure to prove separate assets.
Holding
In a 2026 case release on the Jiangsu Courts website, the Kunshan People's Court found horizontal veil piercing appropriate because three companies under one controller freely switched delivery-note and invoice names while the same team continued to place orders, reconcile accounts, receive goods, and use the steel. Two of the companies had no real premises, staff, or payment capacity and functioned as shells. The court therefore held the affiliated companies jointly liable, and also imposed liability on the sole shareholder of the one-person company for failure to prove separate assets.