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In a civil lawsuit against a corporation can the corporate veil be broken and the personal assets of the defendant be part of the lawsuit?
Wiki User
∙ 15y ago
In some cases, yes. There would have to be a showing that somehow the corporation was invalid, such as mismanagement of corporate assets, failure to comply with state laws, using the corporation only as a facade to hide fraudulent activities, etc. Since this can vary widely, and is made even more complicated by the fact that the laws of the state where the corporation was incorporated will govern, see an attorney about this matter.
Wiki User
∙ 15y ago
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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.
Can a personal garnishment be placed against a corporation if you are an officer of that corporation?
No.
Can a personal garnishment be placed against a corporation?
No.
What is corporate hedging?
it is a way that a corporation can protect itself against the foreign exchange rates
How can you file a lawsuit against a corporation?
You simply name the corporation as a defendant by using its corporate name and place of business. Sometimes the actual corporate name is unknown because it is being operated under a business name. Most state have a registry of "business names" that match up to the actual corporate name. You should be able to get the true corporate name from state records. Sometimes court rules allow an unknown corporation to be named as a defendant using a fictitious name like "ABC, Corporation, a fictitious name to be made more specific during discovery", or something like that. The court rules will tell you how. The filed complaint is served according to the applicable court rules either by delivery or certified mailing to the company at its place of business or on its named registered agent. The name of the registered agent can be obtained from State or local records.
What is the definition of a limited liability company?
The limited liability company is a hybrid legal entity that has both the characteristics of a corporation and of partnership. An LLC provides its owners with corporate like protection against personal liability.
Can a director give a personal guarantee for a loan?
He can but should not. A personal guarantee defeats any corporate shield against seizure of personal assets.
How does double taxation of a corporate income occur?
Income to the corporation, as a legal "person", is taxable against the corporation. When the treasury pays dividends from its income to its shareholders, the dividend is taxable again as "income" to the shareholders. A "subchapter S-corporation" avoids this by skipping the corporate taxes and directly taxing the shareholders for any corporate income.
Can you sue for money owed from a personal loan?
Sure, hopefully you have a signed promissory note as evidence of the loan. If not, its your word against the defendant.
The effects of lifting the corporate veil?
If you own a corporation and adhere to the formalities of having a company (maintaining corporate minutes, separate bookkeeping and accounting, etc.) then the company exists as its own entity. In this case, if a case is brought against the corporation as an entity, the private resources of the owner are shielded. However, let's say that you routinely drive to the grocery store and buy all of your groceries using the company checking account. In that case you've pierced the veil and ceased behaving according to the rules of being a corporation---so, you no longer enjoy the protections of being a corporation. If the corporation were to be sued, then your personal assets could then be part of the judgment against you. I qualify this by saying that I am a business owner but not an attorney, but this is my very basic understanding of this matter. I hope my crude explanation assists you in some way.
What are the advantages of corporate company?
Here are some advantages of a Corporate Company: A corporation provides owners with personal asset protection. A company that incorporates, the owner has limited liability protection against company's debts and obligations. That means creditors of a incorporated business may not pursue the business owner's personal assets to attempt to recover business liabilities and obligations. The owner of a corporate business are liable for business losses and debts up to their investment in the corporation. Businesses in a corporation find it easier to transfer ownership. Ownership interest in a corporation can be sold or assigned by simply transferring the company's stock certificate to another shareholder. And potential investors will be more likely to invest in your corporation rather than a sole proprietorship or partnership, because of the limited liability protection given to its owners. In some cases , an incorporated business may have a "buy-sell" agreement that prohibits when and to whom shares of the company may be sold. A business in corporate form increases the credibility of the company. Plus customers, suppliers, and lenders feel more at ease when dealing with a corporation. Also a business in corporate form appear to be more professional compared to the other types of businesses. A business that takes out the time, effort, and money to organize a corporation lets people know that the company is around to stay. A business in corporate form has unlimited life. That means a corporation may stay in existence well beyond the lifespan of its original owners. A corporation will continue to exist, and will not be dissolved or cancelled when shareholders die or withdraw from the company. In fact, a business in corporate form will continue to operate in that manner, regardless of who owns it.
What is the corporation of Danya Blair?
Danya Blair current works as a defense of corporate clients against employment claims such as , discrimination, sexual harassment FLSA, FMLA allegations, and more.
