Typically individual stockholders are not held responsible for the actions of a corporation. Exceptions usually relate to comingling of funds, underinsuring, or similar actions by the corporate leadership. This is called:

Question

Quizplus · Accepted Answer

Piercing the corporate veil refers to the legal concept of holding individual stockholders liable for the actions of a corporation when the corporate entity is deemed to have been used improperly or for fraudulent purposes. The exceptions mentioned, such as comingling of funds or underinsuring, are examples of situations where the corporate veil may be pierced. The other options do not accurately describe this concept.

Typically Individual Stockholders Are Not Held Responsible for the Actions