WHAT DOES IT MEAN TO “PIERCE THE CORPORATE VEIL”?

“Piercing the corporate veil” is a legal term of art that refers to holding a business owner, officer, or director personally liable when they have engaged in wrongful conduct, such as failing to maintain the required separation between the individual and the corporate entity. For example, this can occur when an owner uses corporate funds for personal purposes, or fails to observe proper procedures in operating the business. If found liable in this context, owners can be required to compensate plaintiffs from their personal assets for losses arising from their wrongful conduct.


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