A corporation is an artificial being created by law which is vested with a personality that is separate and distinct from its shareholders, directors, officers, and other connected or related corporations. By this attribute, a stockholder may not generally, be made to answer for the acts and liabilities of the corporation, and vice versa. Thus, one significant advantage of setting up a corporation is this "separate personality", which insulates and separates stockholders from the liabilities of the corporation.
However, a corporation's separate and distinct personality may be pierced or disregarded in certain instances. When the corporate veil is pierced, the corporation and persons which are normally seen and treated separately from each other are viewed and treated as one, such that, when the corporation is adjudged liable, said persons become liable as well as if they were the corporation itself.
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