PIERCING THE CORPORATE VEIL

Corporate law requires that a corporation be treated as it’s own entity, separate from the shareholders. Shareholders are shielded from personal liability in the absence of a violation corporate law, such as an ultra vires act, e.g. commingling the assets of the corporation with the personal assets of shareholders. Should such an ultra vires act occur, the law allows for a court to pierce the corporate veil of shareholder protection and allowing for creditors to obtain judgments against the personal assets of the shareholders.