When a shareholder commingles personal and corporate interests so that the firm has no separate identity, the shareholder may be held liable for the firm's debts.

Question

Quizplus · Accepted Answer

This situation describes "piercing the corporate veil," where courts may hold shareholders personally liable for the firm's debts if they fail to maintain separate identities for themselves and the corporation.

When a Shareholder Commingles Personal and Corporate Interests So That