Courts are likely to pierce the corporate veil when shareholders' personal interests and corporate interests are commingled such that the corporation has no separate identity.

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In some cases,courts will deny limited liability to a corporation that would normally have de jure or de facto status because shareholders have used the corporation to engage in illegal or wrongful acts.Shareholders attempt to hide behind the corporate veil of limited liability to protect themselves from personal liability.In these cases,courts pierce the corporate veil,or impose personal liability on shareholders.Courts are likely to pierce the corporate veil,for example,when shareholders' personal interests and corporate interests are commingled such that the corporation has no separate identity.

Courts Are Likely to Pierce the Corporate Veil When Shareholders