Disregarding the corporate entity

{
  "id": "MLC-T-LAW-001669",
  "term": "Disregarding the corporate entity",
  "field": "Law",
  "definition": "The legal act of piercing the corporate veil, where a court sets aside the limited liability protection of a corporation or limited liability company. This allows creditors or plaintiffs to hold the individual shareholders or members personally liable for the entity's debts or actions. Courts typically do this when the corporation is used to perpetrate fraud or injustice, or when corporate formalities are not observed.",
  "url": "https://mlchart.com/terminology/law/disregarding-the-corporate-entity/"
}