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BSTM 2B
1. The doctrine of corporate entity, also known as corporate personality or legal personality, is a legal concept that views a corporation as a separate legal entity distinct from its owners or shareholders. This principle grants the corporation its own legal rights and liabilities, enabling it to enter into contracts, own property, sue or be sued, and conduct business independently. The doctrine essentially recognizes the corporation as having its own legal identity separate from the individuals who own or manage it, providing limited liability protection to shareholders and allowing the corporation to function as a legal person in the eyes of the law.
2. The Doctrine of Piercing the Veil of Corporate Entity refers to a legal principle that allows a court to disregard the limited liability protection typically afforded to shareholders or owners of a corporation. Normally, a corporation is considered a separate legal entity from its shareholders, meaning the shareholders are not personally responsible for the corporation's debts or liabilities.
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