Shareholder Limited Liability and Piercing the Corporate Veil

Summary

A corporation is a legal entity distinct from its shareholders (Salomon v Salomon & Co, [1897] A.C. 22). As such, subject to certain exceptions discussed below, shareholders are not personally liable for the acts of the corporation. A shareholder's liability is generally limited to the amount of his, her or its investment in the corporation. For information on civil litigation tasks for in-house counsel, see the In-House Civil Litigation Resource Kit.