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Asked by Desmond Teddy on May 27, 2024

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A court will pierce the corporate veil of a corporation when the corporate privilege is abused for personal benefit.

Corporate Veil

A legal concept that separates the personality of a corporation from the personalities of its shareholders, and protects them from being personally liable for the company's debts and other obligations.

Corporate Privilege

A legal principle that allows corporations to withhold certain confidential communications from disclosure, often relating to legal advice.

  • Recognize the significance of the corporate veil and circumstances under which it may be pierced.
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Courtney SoucierMay 27, 2024
Final Answer :
True
Explanation :
Piercing the corporate veil occurs when a court disregards the separate legal entity of a corporation, typically due to the misuse of the corporate form to avoid legal obligations, commit fraud, or for personal gain, thus holding the shareholders personally liable for the corporation's actions or debts.

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