What is Piercing the Corporate Veil? — Personal Liability Risk for Founders (2026)

Limited liability is not absolute. Courts can hold founders personally liable for company debts in cases of fraudulent trading, wrongful trading, personal guarantees, and sham companies. This article covers the specific circumstances where personal liability is imposed, how to protect yourself, and why limited liability needs to be actively maintained (separate bank accounts, no personal use of company funds, etc.).