Key Cases: Company Law

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Language: English

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A business corporation is a legal entity permitted by law in every state to exist for the purpose of engaging in lawful activities of a business nature. The alter ego doctrine allows courts to pierce the corporate veil when two factors exist: (1) the shareholder or shareholders disregard the separate corporate entity and use the corporation as a tool for personal business, merging their separate entities with that of the corporation and making the corporation merely their alter ego; and (2) recognizing the corporation and shareholders as separate entities would give court approval to fraud or cause an unfair result.

Pages: 208

Publisher: Routledge (January 11, 2013)

ISBN: B00B0YVO1Y

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