Who is the alter ego of a company?
Owners and the persons who manage the affairs of the company are considered as the alter ego of the company because there is such a unity of interest in the ownership that the separate personality of the company and the owner or shareholder does not exists.
Can a company be the alter ego of another company?
See our prior article on the alter ego doctrine, commonly known as “piercing the corporate veil”. The doctrine can also be applied when one corporation is the alter ego of another.
What is alter ego theory?
The doctrine of alter ego is based on the assumption that the corporation as well as the shareholders and the managing directors are the alter egos of each other, i.e., one is the shadow or reflection of the other or can be understood as two sides of the same coin.
What are the elements of 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.
What’s another word for alter ego?
In this page you can discover 36 synonyms, antonyms, idiomatic expressions, and related words for alter ego, like: other self, counterpart, , doppelgänger, second self, backup, stand-in, understudy, other personality, surrogate and vivant.
How do you prove alter ego?
The 14 Factors to Test for Alter Ego Liability The treatment by an individual of the assets of the corporation as his own. The failure to obtain authority to issue stock or to subscribe to or issue the same.
Is alter ego a cause of action?
Generally, What is an “Alter Ego” Cause of Action? The “alter ego” doctrine allows a party to pierce the corporate veil and pursue shareholders of a corporation based upon the manner in which the corporation has been managed.
What is Dr Jekyll’s alter ego called?
Jekyll and Mr. Hyde
Jekyll and Mr. Hyde (1886) by Robert Louis Stevenson. His alter ego is the evil, barely human Mr. Hyde.
Is it good to have an alter ego?
A well thought out alter ego can help you bridge the gap between where you are now and where you want to be. It can allow you to step out of the box that you’ve created for yourself and do something that’s totally out of character for you. Your alter ego can help you get out of your own way.
Is alter ego a claim?
The alter ego doctrine arises when a plaintiff comes into court claiming that the opposing party is using the corporate form unjustly and in a way that is harmful to the plaintiff’s interests.
Is Hyde Jekyll’s alter ego?
Hyde, the evil alter ego of Dr. Jekyll, a fictional character in Scottish writer Robert……
When does alter ego liability apply to a corporation?
When evaluating alter-ego liability, courts do not make a distinction between forms of corporations, and the doctrine applies equally to non-profit corporations and for-profit corporations. Case References: Associated Vendors Inc. v. Oakland Meat Packing, Co. (1962) ; Automotiz del Golfo de California v.
What does the law of alter ego mean?
The law of alter ego allows a party to pierce the corporate veil and pursue the shareholders of the corporation based on the manner in which they have dealt with the corporation.
When is an alter ego piercing the corporate veil?
Where you have a situation where the target alter ego is floating loans or infusing monies to cover basic operating expenses, you are on your way in piercing the corporate veil. Several courts have held that inadequate capitalization is in and of itself sufficient to find piercing of the corporate veil.
How can I strengthen my claim of alter ego?
Establishing common assets or conduct between the two companies will strengthen any liability under the doctrine of alter ego. Where you can demonstrate that the same facility is used, same bank accounts, or that business operations are one and the same, you are likely to bolster a claim of alter ego.