__________ refers to a method by which courts hold shareholders individually liable for claims against a corporation.
A) Reverse liability
B) Piercing the corporate veil
C) Upholding the ethical theory
D) Unveiling

Question

Quizplus · Accepted Answer

Piercing the corporate veil is a legal doctrine in which courts allow shareholders to be held personally liable for the debts and obligations of a corporation when they have abused the corporate form, such as by commingling assets or using the corporation to commit fraud. This piercing of the corporate veil essentially lifts the protection that incorporation provides, exposing individual shareholders to legal claims.

__________ Refers to a Method by Which Courts Hold Shareholders