If the court "pierces the corporate veil" it may hold the shareholder(s) personally liable for corporate debts.

Question

Quizplus · Accepted Answer

Piercing the corporate veil means that the court disregards the separate legal entity of a corporation and holds the shareholders personally liable for the corporation's debts or liabilities. This is typically done when the shareholders have not maintained the necessary legal formalities and have commingled personal and corporate assets.

If the Court "Pierces the Corporate Veil" It May Hold