Piercing the Corporate Veil Self-Quiz
Dianne has been using a corporation
that she has established to hide her money from her personal creditors.
She has been secretly intermingling her and the company’s finances
and transferring assets out of her home and into the company’s business
and under its name. If she is sued by one of her creditors, the courts
may:
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Jim has been sued for fraudulently
transferring a series of valuable paintings he had to his corporation
in order to avoid his creditors taking the assets as part of his repaying
debts he owes them. The court, in response to the suit, has determined
it is appropriate for them to pierce the corporate veil. What does this
mean for Jim?
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