The application of the inverse theory of the disregard doctrine in light of the brazilian legal system

Abstract

The inverse disregard of the legal entity is a form of preventing the use of the legal entity as a maneuver to practice fraudulent and illegal acts, detrimental to the rights of third parties, especially when the individual transfers all his assets to the estate of the company of which he is a partner, generally the controller, hiding his assets and frustrating any charge of debts and obligations assumed, that doesn’t have any relation with the company. This paper has the purpose of identifying if the inverse disregard is applied on the basis of objective and delimited criteria, expressly set forth in the legal system, or if it is applied on the basis of the magistrate’s subjectivity, disrespecting any specific requirements.