Protections found in Senate Bill 242 now give Nevada the highest standard in the United States against the threat of "reverse piercing" the corporate veil. "Reverse piercing" occurs when creditors of individual stockholders foreclose on the corporate stock owned by the stockholder in order to satisfy a debt or judgment. Nevada is the ONLY STATE TO PROVIDE CHARGING ORDER PROTECTION FOR THE STOCK OF CLOSELY-HELD CORPORATIONS (as of July 1, 2007). Under Nevada’s new law, the stock of a corporation with between 1 and 75 shareholders is protected from foreclosure by outside creditors. All qualified stock is subject to charging order limitations that make the creditor an assignee of corporate distribution income. This provides the exclusive remedy for the judgment creditor.

The statute requires the presence of either "fraud" or "manifest injustice", terms which have their own legal definition, and require the presence of nefarious intent. Other states provide for piercing of the corporate veil under a broader range of technical oversights that have a much lower threshold. These criteria for corporate veil piercing are not possible under Nevada law, and include such common issues as: Failing to properly maintain corporate formalities; i.e. meetings, minutes, resolutions, stock records, etc.; Commingling corporate and personal funds; Undercapitalization of the company in light of its industry and market; Failure to maintain arm’s length relationship with other entities, etc. In states where the corporate veil can be pierced as the result of technical oversight, i.e., forgetting to record an action, Nevada has clear advantages over other states.