Hawaii Jury Instruction - 1.9.5.2 Subsidiary As Alter Ego Of Parent Corporation

• Category: Federal - Jury Instructions
• State: Multi-State
• Control #: US-11CF-1-9-5-2
• Format: Word; Rich Text

Description

This form contains sample jury instructions, to be used across the United States. These questions are to be used only as a model, and should be altered to more perfectly fit your own cause of action needs.

Hawaii Jury Instruction — 1.9.5.2: Subsidiary As Alter Ego Of Parent Corporation is a legal instruction that explains a concept within corporate law. This instruction focuses on the circumstances in which a subsidiary company can be considered the alter ego of its parent corporation. In the context of corporate law, a subsidiary is a company that is controlled, directly or indirectly, by another company known as the parent corporation. Normally, a subsidiary maintains its separate legal identity from its parent, but under certain circumstances, the concept of alter ego can be invoked, allowing the parent corporation to be held responsible for the actions and liabilities of its subsidiary. This Hawaii jury instruction discusses the criteria that must be met to establish that a subsidiary is the alter ego of its parent corporation. These criteria may include factors such as: 1. Unity of ownership and control: The instruction examines whether there is a high degree of common ownership and control between the parent corporation and its subsidiary. 2. Lack of separate identities: It assesses whether the subsidiary company does not have an independent existence and merely operates as an extension or instrumentality of the parent corporation. 3. Inadequate capitalization: The instruction considers whether the subsidiary is significantly under capitalized, relying mostly on the parent corporation's funds for its operations. 4. Intermingling of finances: It evaluates whether there is a commingling of finances between the parent corporation and its subsidiary, such as the use of one bank account for both entities. 5. Disregard of formalities: It investigates whether the subsidiary company fails to observe corporate formalities, such as holding regular board meetings or maintaining separate records. However, it's important to note that the specific criteria and their interpretation may vary depending on the jurisdiction and the circumstances of the case. Different types or variations of this Hawaii jury instruction might exist to cater to different legal situations or to adapt to specific legal standards. Overall, the Hawaii Jury Instruction — 1.9.5.2: Subsidiary As Alter Ego Of Parent Corporation provides a framework for determining when a subsidiary company can be treated as the alter ego of its parent corporation. By considering relevant factors, this instruction helps jurors evaluate the extent to which a parent corporation should be held accountable for the actions and liabilities of its subsidiary, ensuring fairness and justice in corporate legal proceedings.