Piercing the Corporate Veil in Company Law

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59 Questions

What does the mid-term short exam primarily assess?

According to the class rules and suggestions, what is the recommended method to take notes?

What is one of the class rules regarding phone usage during the session?

What happens if there is any class disruption according to the class rules?

What study approach does the final exam take according to the information provided?

According to class suggestions, when should students ask the professor questions?

When the corporate veil is 'pierced', what happens to the shareholders?

In which situations can the corporate veil be pierced according to the text?

What does it mean when the text mentions a company being a 'mere façade' or a 'sham'?

In the given example of Corporations A, B, and C, why did Corporation B transfer all its assets to Corporation C?

What happens to limited liability when the corporate veil is pierced?

Why would a court disregard the corporate entity and hold shareholders personally liable?

What legal concept did the House of Lords firmly establish in the Salomon case?

What did the liquidator on behalf of unsecured creditors allege about the company in the Salomon case?

What rights did Salomon have through the floating charge in the liquidation process?

According to the House of Lords ruling, what is irrelevant when discussing a company's rights and liabilities?

What did the liquidator allege regarding the relationship between Salomon and the company?

What did the House of Lords determine about the company's status despite allegations of being a sham?

What type of contribution does Shareholder A make to the company?

Which type of contribution does not contribute to the constitution of share capital?

What type of contribution does Shareholder B make to the company?

Which shareholder contributes services to the company?

What is the total share capital of the company with Shareholders Liam, Kate, and Lucy?

In the Ocala Breeders v. Hialeah case, which company was considered the parent company?

What activities did the subsidiary company of Ocala Breeders handle?

What was the monetary amount involved in the lawsuit against the subsidiary?

Which factor is NOT listed as a reason to lift the corporate veil according to the reading?

What must a creditor prove to show that the owner intentionally underfunded the entity?

How does courts analyze if the level of capital in a company is reasonable or enough?

What happens to a shareholder's stake when a company issues new shares and the shareholder does not subscribe to any of them?

Which method can existing shareholders use to avoid dilution of their stake if the company issues new shares?

What is one way for shareholders to increase the share capital through a tangible contribution?

If the value of each share increases without changing the number of shares, what happens to the share capital?

In what scenario would a shareholder's voting rights and dividends be diluted?

How does increasing the nominal value of existing shares impact the share capital?

What is required within 8 days of receiving funds paid as a contribution in cash?

Who has the authority to appoint a contribution auditor for assessing goods brought in as contributions in kind?

What is the consequence of a capital increase without considering pre-emptive rights of shareholders?

What happens if no valuation is conducted by a contribution auditor for assets contributed?

What is included in the reserves used for capital increase under the 'Incorporation of reserves' section?

When can new shares be subscribed by third parties according to the text?

What is the main aim of a capital raise for a company?

How can companies raise capital by issuing new shares?

What may happen to existing shareholders when a company issues new shares to new members?

In a capital raise, what could possibly prevent a company from facing dissolution?

How does an increase in share capital impact a company's financial structure?

What is one way a company may raise capital according to the text?

What percentage of votes cast in favor of the resolution is generally required for a special resolution to decide on capital raising?

In what cases does a capital increase require a unanimous decision according to the text?

What is the minimum deadline for subscribing to shares before a capital increase in cash?

What is one requirement when initiating a capital increase in cash?

What does a special resolution for capital raising generally state according to the text?

What formal step needs to be taken regarding the articles of association during a capital increase?

What are the 3 standards applied to directors/officers to determine compliance with the Business Judgment Rule?

In Smith v. Van Gorkom, why was the director found to be grossly negligent?

What are the limitations on the powers of directors mentioned in the text?

What type of actions may directors not take without first obtaining shareholder approval?

What is required for a director's inaction to be protected by the Business Judgment Rule?

In what scenario can a director's actions breach the duty of care?

Description

Test your knowledge on the legal concept of 'piercing the corporate veil' in company law, where shareholders may be held personally liable for the company's obligations. Learn about the implications of this legal principle.

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