Stockholders Liability

Question 1

Normally the liability of shareholders

Answer 1

are limited to their contribution

Question 2

“Pierce the corporate veil” means

Answer 2

Holds the stockholders personally liable for the debts of the corporation if used to defraud people or other injustices

Question 3

Example of pierce the corporate veil is

Answer 3

1) shareholders open a corporation knowing that it has less than satisfactory capital to pay debts
2) Co-mingling assets and financial records

Question 4

The courts will not pierce the corporate veil for an

Answer 4

Ultra vires Act