Legal Definitions - corporate veil

Definition: The legal concept that separates the actions of a corporation from its shareholders, protecting them from personal liability for the corporation's actions.

For example, if a corporation is sued for breach of contract, the shareholders are not personally responsible for paying damages. Instead, the corporation's assets are used to satisfy the judgment.

Definition: The legal process of disregarding the corporate veil and holding shareholders, directors, or officers personally liable for the corporation's actions.

For example, if a corporation is used to commit fraud or other illegal activities, a court may pierce the corporate veil and hold the individuals responsible for the damages caused.

Overall, the corporate veil is an important legal concept that protects shareholders from personal liability for the actions of the corporation. However, in certain circumstances, the veil may be pierced to hold individuals accountable for their actions.