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a corporation is a separate entity thats distinct from its individual members or shareholders however in certain situations a court may disregard a corporations separate existence and hold its shareholders personally liable for a corporate debt by piercing the corporate veil in the 1990 case bots versus aerobar the south dakota supreme court considered whether a court could pierce the corporate veil to hold a corporations shareholders liable for a motorists injuries edmund and lavella nurath husband and wife owned the aero bar in sioux falls south dakota and their daughter jacquette served as the bars manager in 1980 the neuroth formed aerobar incorporated a separate entity that purchased the bar for one hundred fifty five thousand dollars with a five thousand dollar down payment pursuant to the purchase agreement the nurofs executed a promissory note personally guaranteeing payment of the one hundred fifty thousand dollar balance a few years later the corporation obtained financ