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Blizzard [7]
3 years ago
6

______is a doctrine that says if a shareholder dominates a corporation and uses it for improper purposes, a court can disregard

the corporate entity and hold the shareholder personally liable for the corporation's debts and obligations.
Social Studies
1 answer:
AysviL [449]3 years ago
4 0

Answer:

Piercing the corporate veil

Explanation:

This are the options that come with this question:

  • hiding behind the corporate skirt.
  • whistleblowing.
  • piercing the corporate veil.
  • limited liability.

This is an example of the doctrine of "piercing the corporate veil." This describes a situation in which the shareholders of a corporation can be held personally liable for the debts and liabilities of a corporation, according to a court. This is in contrast to common practice in corporations, which assumes that, if a corporation is sued, the shareholders cannot be brought into the lawsuit. "Piercing the corporate veil" usually occurs in the case of fraud, or in the case of egregious and willful activity that put corporate gain over the public good.

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