Why does court lift the veil of incorpartion?

Courts lift the veil of incorporation to hold shareholders or directors personally liable for a company's actions or debts when the company is used to perpetrate fraud, evade legal obligations, or conduct unjust activities. This legal doctrine aims to prevent misuse of the corporate structure, ensuring that individuals cannot hide behind the corporation to escape accountability. It is typically applied in situations where there is insufficient separation between the personal and corporate affairs of the individuals involved.