What is meant by the term “piercing the corporate veil“? … Corporate directors and/or officers may be held personally liable to a person damaged by an act of the corporation.
Accordingly, which of the following characterizes a corporation quizlet?
2. Which of the following characterizes a corporation? It is separate from its owners or incorporators.
Furthermore, which of the following is a statement made by one party to induce another party?
Innocent misrepresentation is a statement of a material fact made by one party to induce a contract with another party, without the knowledge of its falsity, but with due care. The remedy is usually termination or rescission of the contract.
What do you mean by piercing of corporate veil?
Piercing the Corporate Veil means looking beyond the company as a legal person. … In certain cases, the Courts ignore the company and concern themselves directly with the members or managers of the company. This is called piercing the corporate veil.
What is piercing the corporate veil Why is it important?
A key reason that business owners and managers choose to form a corporation or limited liability company (LLC) is so that they won’t be held personally liable for debts should the business be unable to pay its creditors. … When this happens it’s called “piercing the corporate veil.”
Who can pierce the corporate veil?
In general, creditors have no recourse against corporate shareholders, as long as formalities are satisfied. When, however, the corporation is fraudulently created to escape liability, then creditors may pierce the corporate veil.
Which of the following features characterizes a corporation?
Which of the following features characterizes a corporation? The liability of the corporate shareholders is limited to the value of the stock they own. Business structures in which ownership and management are separate, as with corporations, are subject to principal-agent problems.
What is corporate governance quizlet?
corporate governance refers to the set of guidelines by which a company is governed to ensure that a company. fulfils its goals and objectives in a way that adds to the value of the company while being beneficials to stakeholders. stakeholders. board of governors, managers and shareholders.
What is a corporate meeting?
Definition: Corporate meetings are those business-oriented meetings in which the participants represent the same company, corporate group, joint-venture, or client/provider relations. Comments: A corporate meeting generally has the following characteristics: it is not organised by an external organisation; the aim of …
How do you hold a corporate meeting?
A summary of the basic steps required for holding an annual meeting are set out below.
- Set the Date. …
- Give Notice of the Meeting. …
- Describe the Business of the Meeting in the Notice. …
- Confirm Quorum for the Meeting. …
- Appoint a Chair. …
- Appoint a Secretary. …
- Conduct Annual Business. …
- Keep Minutes of the Annual Meeting.
How often do corporate minutes need to be done?
once a year
What are the 3 types of misrepresentation?
There are three types of misrepresentations—innocent misrepresentation, negligent misrepresentation, and fraudulent misrepresentation—all of which have varying remedies.
How do you prove misrepresentation?
To prove fraudulent misrepresentation has occurred, six conditions must be met:
- A representation was made. …
- The claim was false. …
- The claim was known to be false. …
- The plaintiff relied on the information. …
- Made with the intention of influencing the plaintiff. …
- The plaintiff suffered a material loss.
Is misrepresentation a term?
An untrue statement of fact or law made by Party A (or its agent) to Party B, which induces Party B to enter a contract with Party A thereby causing Party B loss. The remedies for misrepresentation are rescission and/or damages. …
