Asked by Gabrielle Monique on Jun 01, 2024
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A corporation with one person who is the only shareholder,officer,and director will have its corporate veil pierced,making that person personally liable for all the obligations of the dominated corporation.
Corporate Veil
The corporate veil is the legal concept separating the actions of a corporation from its shareholders, protecting them from personal liability.
Shareholder
An owner of a corporation, who has no inherent right to manage the corporation but has liability limited to his capital contribution. Also called stockholder.
Obligations
Duties or responsibilities that are legally or morally binding.
- Understand the concept of piercing the corporate veil and conditions under which it applies.
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Learning Objectives
- Understand the concept of piercing the corporate veil and conditions under which it applies.
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