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In Reply to: Re: "Legally and Technically" Correct? posted by Sigh on February 05, 2004 at 07:51:52:
I've heard of that. You have to prove that the Corporation is so closely held, that it was in fact, not a separate entity.
It can happen in a family (small f) business where the board of directors are all related. So, when a lawsuit is filed and the damaged exceed the corporate assets they will attempt to pierce the corporate veil to prove that there really was no corporation, just a bunch of related people. Then they sue those poor unfortunates out of house and home.
The way to avoid it is to put people who aren't related on the board of directors. I believe FCF has done that.
