Vereenzelviging

Identification is a legal doctrine by which a court identifies a company with its shareholder or director. This occurs where the separation between the legal entity and the natural person is abused or where the circumstances otherwise justify it. The effect is that the natural person may be held personally liable for acts formally performed by the company.

The relevance of identification lies in preventing abuse of the limited liability afforded by legal entities. In practice, it is applied in cases of tort or insolvency, where creditors would otherwise have no recourse. It constitutes an exception to the principle of separate estates.