How is "corporate veil piercing" relevant to personal jurisdiction?

"Corporate veil piercing" is relevant to personal jurisdiction because it allows a court to hold individual owners or shareholders personally accountable for a corporation's actions under certain circumstances. When a corporation is treated as a separate legal entity, its owners typically enjoy limited liability, meaning they are not personally liable for the corporation's debts or legal obligations. However, if a court determines that the corporate structure is being misused—such as in cases of fraud or where the corporation is merely an alter ego of the individual owners—the court may "pierce the corporate veil."

This action can establish personal jurisdiction over the individuals behind the corporation, as it treats them as part of the legal proceedings rather than just the corporation itself. When personal jurisdiction is asserted over these individuals based on their direct involvement or misuse of the corporate entity, it reinforces the principle that personal jurisdiction can extend beyond just the corporation to include its owners if the circumstances warrant such a ruling.

This situation underscores the importance of examining the connection between the individuals and the corporation and ensures that they cannot evade accountability simply because the corporation is a separate legal entity. In contrast, the other options mischaracterize the implications of corporate veil piercing in relation to personal jurisdiction.