Through historical development, the positions of different countries and their views on the institution of piercing the corporate veil, that is, the institution of responsibility of the members of the capital society for their obligations after the loss of the privilege of non-responsibility, will be explained. American, German and English studies had the greatest influence in his development. A special emphasis is placed on the American concepts on which the Croatian views on the understanding of the piercing the corporate veil were built. The largest part of the work is devoted to the reasons for the existence of the institute and the causes that could potentially lead to it. The relevant legal provisions on which piercing the corporate veil is based can be found in the current Companies Act of 2022, specifically Article 10 and related paragraphs. The piercing occurs in commercial companies, capital companies, which characterize the separation of the company's assets from the private property of its members, and as a result of which the members of the capital company enjoy the privilege of non-responsibility for the company's obligations. However, this privilege can be waived in cases of piercing the corporate veil.