Consider, if you will, the position of Mr. A, an ordinary resident of Suburbia, Long Island, New York, U.S.A., who on the advice of his stock broker that he has an opportunity to buy a "growth" stock, invests $5,000 in 100 shares of X company, organized under the laws of Switzerland. The World erupts into another tragic war and Mr. A receives peremptory demand from his government to turn over his shares to it. He learns that his investment gives aid and comfort to the enemy since X company, apparently a non-belligerent enterprise in a neutral country, is alleged to be a "cloak" for enemy interests. As a purchaser in good faith, an unquestionably loyal American citizen residing within the United States, is he to be penalized without recourse? Until very recently, the answer was yes. But we will see that, beginning with an ever-so-slight wedge in an otherwise impregnable doctrine of law, the answer has now changed.
Norman S. Fink,
THAT PIERCED VEIL-FRIENDLY STOCKHOLDERS AND ENEMY CORPORATIONS,
Mich. L. Rev.
Available at: https://repository.law.umich.edu/mlr/vol51/iss5/3