CAN A CORPORATE OFFICER BE PERSONALLY RESPONSIBLE FOR CORPORATE MISCONDUCT?
In some situations, a corporate officer may be held liable for the corporations wrongdoing. This process of holding a corporate officer liable for the corporations conduct is called piercing the corporate veil. A corporation typically acts only through its agents. New Jersey generally adheres to the basic concept of a corporation being an entity in the law separate and apart from the person or persons who own its stock. The main reason for incorporation is the insulation of shareholders from the liabilities of the corporate enterprise. Generally speaking, the party seeking to pierce the corporate veil bears the burden of proving that the court should disregard the corporate entity and hold the corporate officer personally liable. The sanction of piercing the corporate veil is a severe one. For, veil piercing is an equitable remedy whereby the protections of corporate formation are lost. Veil piercing is normally reserved for situations where it is necessary to remedy the fundamental un
