Alter Ego Legal Meaning and Definition

Here is a simplified definition of the legal term Alter Ego.

Alter Ego (n.): this legal term describes a situation where one individual or entity takes on the identity or acts with the interests of another individual or entity. In the eyes of the law, the two are seen as one and the same. Often used in corporate law contexts to determine liability, the concept plays a role when a court perceives that a company is merely a facade for the actions of its owners and therefore disregards the legal separation between a corporation and its shareholders. This legal "piercing of the corporate veil" can make the individual shareholders personally liable for the corporation's debts or acts.