California: Shareholder Liability Under The “Alter-Ego” Doctrine
Ordinarily, shareholders are not personally responsible for corporate liabilities. However, if a corporation has been operated as the “alter ego” of its shareholders, the corporation’s creditors-including torts claimants- may be permitted to “pierce the corporate veil” and enforce their claims directly against the shareholders. (Similarly, an action may lie on an “alter ego” theory...