Inadequate capitalization Inadequate capitalization Funds siphoned or commingled Corporation functioned as a façade of shareholders so that they were treating the assets as their own. There must be some element of injustice that would occur if the shareholder was allowed to avoid personal liability. Fraud Effect of piercing the corporate veil Fraud Alter Ego Doctrine Effect of piercing the corporate veil Under certain circumstances, the court may disregard the corporate entity