What is the alter-ego theory of liability?

What is the alter-ego theory of liability?

The alter-ego theory allows a court to disregard a corporate entity in order to impose liability on a person or a subservient corporation for the corporation’s misdeeds. The theory allows a defendant who is the victim of fraud, illegality or injustice to pierce the corporate veil to seek justice.

What is alter-ego litigation?

Legal doctrine whereby the court finds a corporation lacks a separate identity from an individual or corporate shareholder, resulting in injustice to the corporation’s debtors.

What is alter-ego in criminal law?

Alter-ego refers to a legal principle preventing shareholders being treated as the owners of companies in order to prevent fraudulent activities. The court applies alter-ego rule to ignore the corporate status of a group of stockholders, officers, and directors of a corporation with respect to their limited liability.

Is alter-ego a separate cause of action?

Citing no less an authority than the California Supreme Court, the appellate court concluded, “California law does not recognize an alter ego claim or cause of action that will allow a corporation and its shareholders to be treated as alter egos for purposes of all of the corporation’s debts.” The California Supreme …

What is alter ego doctrine Philippines?

The doctrine of qualified political agency essentially postulates that the heads of the various executive departments are the alter egos of the President, and, thus, the actions taken by such heads in the performance of their official duties are deemed the acts of the President unless the President himself should …

What is alter ego Liability California?

The alter ego doctrine prevents individuals or other corporations from misusing the corporate laws by the device of a sham corporate entity formed for the purpose of committing fraud or other misdeeds. (Associated Vendors, Inc. v. Oakland Meat Co. (1962) 210 Cal.

Is the alter ego rule used in Florida?

2d 1063 (Fla. 5th DCA 2003) states that under Florida law, a court may pierce the corporate veil if a person proves both that the corporation is a “mere instrumentality” or alter ego of the wrongdoer, and that the wrongdoer engaged in “improper conduct” in the formation or use of the corporation.” Hilton Oil Transp.

Who is the president’s alter ego?

Powers of a cabinet secretary As stated above, a cabinet secretary is the alter ego of the President in their respective departments. Thus, they posses the power to issue directives relative to their departments, such as department orders.

Who is the alter ego of the mayor?

It is commonly known that the city administrator is the alter ego of the governor or mayor.