A corporation is viewed as the alter ego of the shareholder-manager when shareholders mix their personal dealings and corporate transactions as if all were personal.

Question

Quizplus · Accepted Answer

When a shareholder treats the corporation's assets as if they were their personal assets, or when a shareholder-manager conducts personal transactions under the guise of corporate transactions, it blurs the line between the two entities and can lead to the corporation being viewed as the alter ego of the shareholder-manager.

A Corporation Is Viewed as the Alter Ego of the Shareholder-Manager