Personal liability is a completely different normative phenomenon than lifting the corporate veil of a company. Personal responsibility means imposing liability on the organ itself, personally, for its actions. Lifting the veil is a cure. The essence of the drug is to ignore the legal personality of the company and to create a direct legal relationship between a third party and the company's shareholders. It should be emphasized that personal liability fulfills the fundamental principle regarding the separate legal personality of the company. Lifting the curtain gnaws at the same principle by ignoring it. The advantage of personal liability lies in its success in "expanding the circle of rivalries and contributing to the development of standards for personal liability of officers and controlling shareholders in the company, without eroding the generality of the principle of separate legal personality" (see A. Habib-Segal, "New Trends in the Laws of Lifting the Veil," Iyunei Mishpat 17 (1992) 197, at p. 214; Civil Appeal 407/89 Tzuk Or in Tax Appeal v. Car Security Ltd., IsrSC 48 (5) 661 (hereinafter: "Tzuk Or Case")
This distinction is important, since personal responsibility is imposed on the organ according to the usual standard for imposing liability in civil law. In other words, the organ will bear the same damage that it personally caused under the laws of liability, causation and compensation - on the other hand, lifting the veil undermines the limited liability itself, which stems from the legal personality of the company (see A. Procaccia, "Concept and Theory in the Theory of Legal Personality ", Iyunei Mishpat 17 (1992) 167" [my emphases L.B.]
Another important distinction between lifting the veil and imposing personal liability lies in the relief that is ultimately obtained. Thus, in the event of a lifting of the veil, the shareholder will be liable for all of the company's debts, in such a way that the veil will be lifted and the shareholder and the company will become one. In a case where we are dealing with the imposition of personal liability, the actor acting on behalf of the company will be liable only for the damage caused as a result of his harmful action, i.e., for damage related to a causal connection to his personal conduct.