The situation: The owner of a limited company uses the corporate account for personal spending and pockets profits with no accounting separation. When the company cannot pay its debts, the creditor pursues the owner personally.
Applicable law: Limited liability separates the company's assets from the owner's, but if 'commingling of assets' is proven (personal and company funds mixed), the 'corporate veil' can be pierced and the owner held personally liable for the debts with his own property.
Outcome: The creditor proved the commingling through bank statements, and the court held the owner personally liable for the company's debts.
🏢 Contracts & trade · Awareness case
Mixing Your Money With the Company's Strips Your Shield · Yalla China
🤝 Governing law: 公司法 / Company Law
Does 'limited liability' still protect you if you mix personal and company funds?
Illustrative, general educational examples — not real specific facts and not legal advice; for awareness only. For an actual situation, consult a licensed lawyer.
🎓 The lesson / takeaway
Lesson: The corporate veil protects you only if you respect it first. Keep your account fully separate from the company's, or the shield falls.
🕒 Updated: 16 March 2026