Corporations

Question 1

Alter ego

Answer 1

such unity of interests and ownership that the corporation and individual are not separate– go after a subsidiary on the theory that the parent and the subsidiary are one in the same

Question 2

Charitable donations

Answer 2

a corporation can give money to a philanthropic entity if the funds are used:

1) consistent with state law
2) corp. benefit
3) donation is modest
4) made in furtherance of corp. interests

Question 3

Limited liability of shareholders and directors of corporations

Answer 3

limited liability can be pierced for

1) maintenance of corporation would be result in fraud or injustice
2) shareholders/directors use the corporation for personal use
3) undercapitalization given the debts and liabilities it is likely to incur
4) fairness– veil may be pierced only in any circumstance where it would be fair