What is the alter ego theory?
Definition. Legal doctrine whereby the court finds a corporation lacks a separate identity from an individual or corporate shareholder, resulting in injustice to the corporation’s debtors.
What are the elements of alter ego?
There are, nevertheless, two general requirements: (1) that there be a unity of interest and ownership that the separate personalities of the corporation and the individual(s) no longer exists, and (2) that, if the acts are treated as those of the corporation alone, an inequitable result will follow.
How do you prove your alter ego?
To make a claim for alter ego under California law, a litigator would have to prove two key elements:
- Unity of Interests. The shareholders in question have treated the corporation as their “alter ego,” rather than as a separate entity; and.
- Inequitable Result.
Is alter ego a cause of action?
Citing no less an authority than the California Supreme Court, the appellate court concluded, “California law does not recognize an alter ego claim or cause of action that will allow a corporation and its shareholders to be treated as alter egos for purposes of all of the corporation’s debts.” The California Supreme …
What is an example of an alter ego?
When a character lives more than one life, having a secret identity or taking on more than one personality, that alternate personality is their alter ego—for instance, think of Spider-Man, who is the alter ego to Peter Parker.
Does everyone have a alter ego?
The truth is, we all have an alter ego, or two. Yes, whether you like it or not you have both an ego and an alter ego. As we allow ourselves to become aware of this, we will then find a heightened ability to ‘engage in a creative play’ with both our ego and our alter ego.
Is alter ego a tort?
Tort Claims Against an Alter Ego May Be Considered an Action “On a Contract” for the Purposes of an Attorneys’ Fees Award under California Civil Code section 1717.
Is alter ego a claim?
The “alter ego” doctrine refers to a rule of law developed by the courts that allows for the obligations of a corporation to be treated as those of its shareholders. The alter ego doctrine disregards the separate legal existence of the corporation, and therefore is sometimes described as “piercing the corporate veil.”
What is the difference between alter ego and piercing the corporate veil?
Under the doctrine of “alter ego” (also known as “piercing the corporate veil”), individuals may be liable for the actions of their corporations in certain circumstances.
What you mean by corporate veil?
“Piercing the corporate veil” refers to a situation in which courts put aside limited liability and hold a corporation’s shareholders or directors personally liable for the corporation’s actions or debts. Veil piercing is most common in close corporations.
Can a corporation be an alter ego of another corporation?
For a corporation or LLC to be ruled merely an alter ego of its owner, courts look at a variety of factors. It should be noted that an entity can be the alter ego of another entity, in cases in which Company A owns and operated Company B.
What is the alter ego doctrine?
“Alter-ego” is equitable doctrine developed by courts to disregard the corporate status of a corporation and hold shareholders personally liable for the corporation’s actions. [4]
What do you think of an alter ego?
It empowers you and lets you step out of your comfort zone We all have weaknesses where we feel vulnerable.
What does ‘alter ego’ mean?
History. The literal Latin translation of alter ego is “the other I” or,commonly,a dual personality.
What would my alter ego do?
What do you want to have an alter ego for?