Louisiana Jury Instruction - 1.9.5.1 Corporation As Alter Ego Of Stockholder
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FAQ
The alter ego test encompasses a host of factors: Listed as follows: Commingling of funds and other assets, failure to segregate funds of the separate entities and the unauthorized diversion of corporate funds or assets to other than corporate uses.
The Alter Ego Doctrine was designed to be an equitable remedy and to prevent injustice. The Alter Ego Doctrine examines specific facts and is implemented on a case-by-case basis. The Alter Ego Doctrine is a two-prong test, and both prongs must be met to successfully pierce an entity's veil.
Alter ego is a legal doctrine whereby the court finds that a corporation lacks a separate identity from an individual or corporate shareholder. The court applies this rule to ignore the corporate status of a group of stockholders, officers, and directors of a corporation with respect to their limited liability.
Alter ego refers not to a cause of action, but generally to a liability doctrine where an owner of a company can be held responsible for certain debts of the company.
The courts' allowance of veil piercing suggests that corporations must maintain certain standards in conducting their affairs or risk losing the attribute of shareholders' limited liability: These standards should promote fair dealing between corporate creditors and the corporation.
Defendants claim that alter ego liability is a question of law that the Court must determine. Plaintiffs claim just the opposite; that alter ego liability is a matter of fact, to be resolved by the trier of fact: the jury.
Alter ego allegations will typically include a combination of the following charges: The corporate agent was the sole owner of the corporation (including limited liability corporations); the corporate agent dominated and controlled the corporation; the corporate agent co-mingled personal funds with the corporation; the ...
Alter ego is a legal doctrine whereby the court finds that a corporation lacks a separate identity from an individual or corporate shareholder. The court applies this rule to ignore the corporate status of a group of stockholders, officers, and directors of a corporation with respect to their limited liability.