Piercing the Veil Flashcards
1
Q
What is piercing the veil?
A
When a court permits a plaintiff to sue a company’s owners directly
2
Q
When can a plaintiff pierce the veil?
A
(1) Corporation is the owners’ alter ego
(2) Corporation is used for fraud, wrong, or unjust act
3
Q
What factors will a court consider when determining whether a corporation is an owner’s alter ego?
A
(1) Domination
(2) Failure to observe corporate formalities
(3) Commingling of funds
(4) Inadequate capitalization
