Asked by Melody Walls on Apr 25, 2024
In order to pierce the corporate veil,a creditor needs to show that each shareholder does not actively participate in the management of the corporation.
Corporate Veil
A legal concept that separates the personality of a corporation from the personalities of its shareholders, protecting them from being liable for the company's debts.
Creditor
A person or institution that lends money or extends credit to another party, expecting to be repaid in the future.
Shareholder
An individual or entity that owns shares in a corporation, making them a partial owner of the company.
- Familiarize oneself with the idea of piercing the corporate veil and the scenarios in which it becomes relevant.
Learning Objectives
- Familiarize oneself with the idea of piercing the corporate veil and the scenarios in which it becomes relevant.
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