What is the alter ego doctrine primarily concerned with?

The alter ego doctrine is primarily concerned with establishing personal liability for business debts. This legal principle holds that when a corporation is merely an extension of its owners or when there is such a unity of interest and ownership between the corporation and its shareholders or members that the separate personalities of the corporation and the individual no longer exist, a court may disregard the corporate structure. By applying the alter ego doctrine, courts can hold individual shareholders, directors, or officers personally liable for the debts and obligations of the corporation. This is particularly important in ensuring that these individuals cannot evade liability by hiding behind the corporate entity, especially in cases where the corporation was used to perpetrate a fraud or injustice.