If a shareholder dominates a corporation and misuses it for improper purposes,a court of equity can disregard the corporate entity and hold the shareholder of the corporation personally liable for the corporation's debts and obligations.

Question

Quizplus · Accepted Answer

This principle is known as "piercing the corporate veil" and is a remedy available in certain circumstances when a shareholder abuses the privileges of the corporate form for their own personal gain.

If a Shareholder Dominates a Corporation and Misuses It for Improper