Alter-Ego Doctrine
Definition
A theory under which a plaintiff may pierce the corporate veil and hold individual or corporate shareholders or a corporate affiliate personally liable for corporate debts. A claim under the alter-ego theory alleges that a shareholder or affiliated entity used the corporation as a mere tool, business conduit, or façade to cover the shareholder's personal dealings. In the context of labor law, the doctrine is invoked when a unionized employer seeks to evade collective-bargaining responsibilities through the formation of an open shop that is substantially the same company.