Because it may result in a piercing of the corporate veil, shareholders' continuous use of corporate property should most especially be avoided by

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In a close corporation, shareholders' continuous use of corporate property can blur the lines between personal and corporate assets, making it easier for courts to pierce the corporate veil and hold shareholders personally liable for corporate debts. This risk is particularly pronounced in close corporations due to their fewer shareholders and more informal operations compared to publicly held corporations.

Because It May Result in a Piercing of the Corporate