When a shareholder commingles personal and corporate interests so that the firm has noseparate…

➤ How can a shareholder prevent being held personally liable for corporate obligations?
A shareholder should maintain separate bank accounts, keep clear accounting records, and document loans and transactions between themselves and the company. They must hold regular meetings, keep minutes, and ensure adequate capitalization and insurance. Following these formalities and avoiding personal use of corporate assets reduces the chance a court will disregard the company’s separate legal identity.