Corporate Veil Case Study
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The court can consider corporate veil may be pierced if the shareholders have not conducted business on corporation basis, have not provided adequate financial basis for business, or have used corporation to defraud. Other factors include: if the corporation has not been adequately capitalized, failed to observe corporate formalities, engaged in fraudulent behavior, absence of regular board meeting, funds of corporation are commingled, no separation of shareholder's funds and corporations funds are not keep, whether one person or small group dominates the control of the corporation. The majority of these factors are present in this case. For instance, board meeting were irregularly held. Healthwin had outstanding liabilities of $150,000