Although American corporate law generally protects shareholders from being personally liable for the actions of the corporation, American law does allow the courts to disregard the corporate form through the doctrine of:

Question

Quizplus · Accepted Answer

Piercing the corporate veil is a doctrine that allows the courts to disregard the corporate form and hold shareholders personally liable when they have abused the corporate form for their own gain, such as by commingling personal and corporate assets, failing to observe corporate formalities, or using the corporation as a mere shell. This doctrine is an exception to the general rule that shareholders are not personally liable for the actions of the corporation.

Although American Corporate Law Generally Protects Shareholders from Being Personally