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Do Piercing the corporate veil means revealing to shareholders the internal rules of corporate management?
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∙ 13y ago
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Wiki User
∙ 13y ago
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The doctrines of-Lifting Piercing the Corporate Veil Ultra Vires?
Explain and illustrate the doctrines of Liftin/ Piercing the corporate Veil Ultra Vires
What is Reverse piercing of corporate veil?
Reverse piercing the corporate veil is the act holding a shareholder personally liable for the debts of the corporation and then (when taking his assets as damages) reaching into the assets of other corporations to which he is a shareholder. Normally when a corporation takes on too much debt and the creditors want their money, it goes insolvent (bankrupt). However, if the corporate formalities have not been observed (there was commingling of personal and corporate funds, there was a failure to maintain the corporate records, etc.) and adhering to the limited liability rules of corporations would promote injustice, a creditor can "pierce the corporate veil" and reach past the limited liability into the personal assets of the shareholder(s). However, if the personal assets of the shareholders are mostly stock in other corporations that have also taken too much debt, this doesn't help much (because the stocks wouldn't be worth much on the market and dissolving those other corporations means their assets would be paid to creditors before they can be distributed to the shareholders). In that situation, the court can "reverse pierce the corporate veil" and take the assets of the other corporations, bypassing the line of creditors.
How do you use Piercing the corporate veil in a sentence?
the brides veil is drggind down on the foor
Kenyas caselaw on piercing the corporate veil?
Piercing the corporate veil is when a company is shown to be corrupt, and engaged in injurious activities. This was the case of a Kenyan Pipeline Company explosion and fire that killed 120 people, and injured hundreds of others. The company was found to be grossly negligent in their operations, an a subsequent lawsuit was filed by victims and their families.
Swelling of your piercing go down?
Well your professional body piercer should have covered that with you at the time you got your piercing done. Best give him/her a phone call and ask for some help, you seem to have some issues going on with your piercing and they should have given you full instructions regarding swelling and pain management.
Can a debt collector sue a small company that is incorporated?
Sure. Depending on the arrangement, the corporation's owners could also be sued personally, under the theory of piercing the corporate veil.
Can personal property be seized from the president of a corporation that has a judgment against it?
No personal property of an indivual officer of a corporation may be seized to pay a corporate debt. This is so even if that individual is the person responsible for the claim against the corporation. As long as the judgment is against the corporation, only corporate assests may be seized. Sometimes plaintiffs in actions against corporations try to get judgments against the individual officers or shareholders as well as the corporation itself by means of a legal theory called "piercing the corporate veil". This is usually not successful. But even if the plaintiff were successful and got a judgment against the corporation and the individual, the individual's property would not be subject to seizure because of the judgment against the corporation. His/her property would be subject to seizure because there would be a judgment against him/her personally. This is the whole purpose of the corporate structure to begin with, that is, the ability to run a business without fear of personal liablity.
What are the warining signs that can go wrong with the lip piercing?
Well your professional body piercer should have covered that with you at the time you got your piercing done. Best give him/her a phone call and ask for some help, you seem to have some issues going on with your piercing and they should have given you full instructions regarding swelling and pain management.
What is dot piercing?
A dot piercing is a piercing that has a stud.
What kind of piercing is a Monroe piercing?
A Monroe piercing is a piercing on the left upper lip. It's called the Monroe piercing due to Marilyn Monroe's mole piercing. Many people now has this piercing which was started by the celebrity herself.
If you file Bankruptcy on your business can they take your personal assets?
Only if then can show that you committed fraud, by piercing the corporate veil (i.e. using the business as your personal property), or if you gave a personal guarantee for business loans/debts.
When is the veil of incorporated be lifted?
You may be referring to the judicial practice of "piercing the corporate veil". One of the reasons for organizing and conducting commerce through a corporation is liability limitation, Thus, there has to be provision for when a corporation is organized in contemplation of the use of, or is used for, fraudulent or other unlawful purposes. There is a multiplicity of situations in which the corporate veil might be pierced. Corporations generally cannot be used as a "shield" behind which an individual can "hide" in order to do something that, when done by the individual without the purported involvement of the corporation, would be unlawful. Probably the primary situtation wherein a court might be persuaded to pierce the corporate veil is where the corporation has been too thinly capitalized than would be deemed as reasonably needed to conduct the commerce the nature of which is contemplated. In situations such as this, the shareholders or officers could therefore be held personally liable for the commercial conduct of the corporation.
