Corporate manipulation

July 27, 2012

  • 101 Corporations and Business Organizations
  • 101II Disregarding Corporate Entity; Piercing Corporate Veil
  • 101k1050 Separate Corporations; Disregarding Separate Entities
  • 101k1056 k. Identity of Directors, Officers, or Shareholders.

101 Corporations and Business OrganizationsEssential purposes of corporate structure, including stockholder immunity, must and will be protected when corporation functions as entity in normal manner contemplated and permitted by law, and when it functions in such manner, there is nothing insidious in stockholder control, interlocking directorates, or identity of officers, but when corporation is so manipulated by individual or another corporate entity as to become a mere puppet or tool for manipulator, justice may require courts to disregard corporate fiction and impose liability on real actor.
Zaist v. Olson, 227 A.2d 552 (Conn. 1967)
Suggested by Ken Laska, Attorney; Segal & Laska, LLC; Plainville, CT