Aug
13
From Wikipedia
Factors for Courts to Consider
- Significant undercapitalization of the business entity (capitalization requirements vary based on industry, location, and specific company circumstances)
- Failure to observe corporate formalities in terms of behavior and documentation
- Intermingling of assets of the corporation and of the shareholder
- Treatment by an individual of the assets of corporation as his/her own
- Failure to pay dividends
- Siphoning of corporate funds by the dominant shareholder(s)
- Non-functioning corporate officers and/or directors
- Concealment or misrepresentation of members
- Absence or inaccuracy of corporate records
- Was the corporation being used as a “façade” for dominant shareholder(s) personal dealings; Alter Ego Theory
- Failure to maintain arm’s length relationships with related entities
- Manipulation of assets or liabilities to concentrate the assets or liabilities
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