Undercapitalization will be considered convincing evidence that the corporate owners intended to use the corporate façade to escape liability.

Undercapitalization

A financial condition where a company lacks sufficient capital to support its operations effectively, often leading to financial difficulties.

Corporate Façade

Refers to an outward appearance maintained by a corporation to conceal its actual purposes or state, often used in a critical context to suggest a lack of transparency or authenticity.

Escape Liability

A legal strategy or circumstance that allows an individual or entity to avoid responsibility for an action or outcome.