"Piercing the corporate veil" refers to a legal concept where courts set aside the limited liability protection typically granted to corporations and their owners. This allows creditors to hold individual shareholders or directors personally liable for the corporation's debts or wrongful actions. It usually occurs when there is evidence of fraud, misuse of the corporate form, or failure to adhere to corporate formalities. To successfully pierce the corporate veil, plaintiffs must demonstrate that the corporation is merely an alter ego of its owners, lacking independence. Factors considered include inadequate capitalization, commingling of assets, and failure to maintain proper records. Courts aim to prevent injustice and uphold the integrity of the corporate structure.