Brief Cards

Question 1

Piercing the Corporate Veil

Answer 1

• circumventing limited liability & holding shareholders personally liable for the obligations of the corporation
  1) Undercapitalization
  2) Lack of corporate formality
  3) Alter ago

Question 2

Business Judgment Rule Defense

Answer 2

1) Made in good faith and acting in the best interests of the corporation
2) actions were based on reasonable investigation
3) Disinterested individuals