#Pierce the veil concert california trial#
The gist of the cases which have considered the doctrine is that both of these requirements must be found to exist before the corporate existence will be disregarded that such determination is primarily one for the trial court and is not a question of law and that the conclusion of the trieer of fact will not be disturbed if it be supported by substantial evidence.Īssociated Vendors, Inc. 3d 290, 300 (quoting from Automotriz etc. There are, nevertheless, two general requirements: “(1) that there be such a unity of interest and ownership that the separate personalities of the corporation and the individual no longer exist and (2) that, if the acts are treated as those of the corporation alone, an inequitable result would follow. There is no litmus test to determine when the corporate veil will be pierced rather the result will depend on the circumstances of each particular case. The alter ego doctrine arises when a plaintiff comes into court claiming that an opposing party is using the corporate form unjustly and in derogation of the plaintiff’s interests. This article explains the requirements to use the alter-ego doctrine and why it is rarely successful. This quote essentially explains the meaning of the alter-ego doctrine that is used in California to pierce the corporate veil. N order to cast aside the legal fiction of distinct corporate existence it must appear that ‘they are the ‘business conduits an alter ego of one another’, and that to recognize their separate entities would aid the consummation of a wrong.’ How to Pierce the Corporate Veil – Alter-Ego Doctrine Piercing the corporate veil means that, in some cases, the corporate form is disregarded and the firm’s shareholders are held personally liable for the debts of the business as a result of the shareholder’s dealings with the corporation. Once one understands that the corporate veil is essentially a means of shielding business owners from personal liability for the obligations of the business, the piercing of the corporate veil is an intuitive concept. What is Piercing the Corporate Veil? (Alter-Ego Liability) If you have questions regarding business entity liabilities, contact an experienced business attorney who can provide guidance on the subject. This limitation of personal liability arising from the form of the business entity is termed as the corporate veil. Such obligations of the business may arise from litigation or from contract. Other business entities, however, limit the business owner’s personal liability for business obligations to the amount initially invested in the company in the case the business assets are unable to satisfy the debts of the business. Partners in a general partnership put their personal wealth on the line to cover the partnership obligations. The corporate veil essentially refers to the corporate form’s ability to shield shareholder assets from creditors of the business entity. Contact an Experienced Alter-Ego / Corporate Veil Piercing Attorney in Los Angeles, Orange County, San Diego, Riverside, San Bernardino, San Jose, Sacramento, and Surrounding Areas in California Today What is the Corporate Veil?
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