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1Is a corporate entity solely liable for the actions or debts of the corporation?
Is a corporate entity solely liable for the actions or debts of the corporation?2May creditors reach the personal assets of corporate officers, directors, and shareholders who have committed wrongful acts?
May creditors reach the personal assets of corporate officers, directors, and shareholders who have committed wrongful acts?3If a corporate veil is pierced, can a corporation’s officers, directors, and shareholders be held individually liable for a corporation’s actions o...
If a corporate veil is pierced, can a corporation’s officers, directors, and shareholders be held individually liable for a corporation’s actions or debts?4What is the alter-ego theory?
What is the alter-ego theory?5In deciding whether to pierce the corporate veil, is there a test courts use to determine whether a corporation and a shareholder are functioning a...
In deciding whether to pierce the corporate veil, is there a test courts use to determine whether a corporation and a shareholder are functioning as a single economic entity or alter ego?6Are courts generally willing to pierce the corporate veil?
Are courts generally willing to pierce the corporate veil?7A man filed the necessary paperwork to incorporate his business. The man was the corporation’s sole shareholder and ran the company as the sole off...
A man filed the necessary paperwork to incorporate his business. The man was the corporation’s sole shareholder and ran the company as the sole officer. The corporation had a board of directors, but the board rarely met. The man opened a bank account for the corporation but frequently paid his personal bills with funds from that account. Every quarter, all corporate profits were disbursed as dividends to the man as the sole shareholder. One day, an employee was driving the corporation’s van and ran a red light, seriously injuring a jogger. Although the van was insured for a small amount, the jogger’s damages significantly exceeded those policy limits. Facing a large damage claim against the corporation, the man decided to dissolve the corporation.Is it likely that the jogger will be able to pierce the corporate veil and sue the man in his personal capacity?