Ask Experts Questions for FREE Help !
Ask
    lauranewman24's Avatar
    lauranewman24 Posts: 2, Reputation: -1
    New Member
    		  
    #1

    Aug 27, 2012, 05:24 PM
    Corporate veil
    If the sole director of the company loans the company money within months as well as after it collapses, and after the collapse seeks to be a preferred creditor, what would be the outcome? Would the coporate veil be lifted and the director made to be liable for the collapse?
    JudyKayTee's Avatar
    JudyKayTee Posts: 46,503, Reputation: 4600
    Uber Member
    		  
    #2

    Aug 27, 2012, 05:25 PM
    Quote Originally Posted by lauranewman24 View Post
    If the sole director of the company loans the company money within months as well as after it collapses, and after the collapse seeks to be a preferred creditor, what would be the outcome? Would the coporate veil be lifted and the director made to be liable for the collapse?

    And would this be homework or a discussion you and your friends were having over dinner?
    lauranewman24's Avatar
    lauranewman24 Posts: 2, Reputation: -1
    New Member
    		  
    #3

    Aug 27, 2012, 05:28 PM
    It's what we're discussing in class however I can't wrap my head around it. I was hoping for some laymans terms.
    JudyKayTee's Avatar
    JudyKayTee Posts: 46,503, Reputation: 4600
    Uber Member
    		  
    #4

    Aug 27, 2012, 05:51 PM
    Quote Originally Posted by lauranewman24 View Post
    It's what we're discussing in class however I can't wrap my head around it. I was hoping for some laymans terms.
    Sorry, but AMHD does not do homework.

    I would guess your age is contained in your name (24) and you are in law school?
    smoothy's Avatar
    smoothy Posts: 25,490, Reputation: 2853
    Uber Member
    		  
    #5

    Aug 28, 2012, 11:28 AM
    As was CORRECTLY stated by JudyKayTee, the rules of this site are we do NOT do your homework for you, we will however help you once you have posted your answer with anything we find wrong with it.

    It also against the site rules to give out an Innacurate because of some OPINION you have.
    AK lawyer's Avatar
    AK lawyer Posts: 12,592, Reputation: 977
    Expert
    		  
    #6

    Aug 28, 2012, 05:06 PM
    Quote Originally Posted by lauranewman24 View Post
    If the sole director of the company ... after the collapse seeks to be a preferred creditor, ...
    I think the Deep Rock case might apply. Look it up.

    Quote Originally Posted by lauranewman24 View Post
    ... Would the coporate veil be lifted and the director made to be liable for the collapse?
    The corporate veil doesn't shield directors for mafeasance, nonfeasance, or misfeasance. It protects shareholders.
Not your question? Ask your question View similar questions
 

Question Tools Search this Question
Search this Question:

Advanced Search

Add your answer here.


Check out some similar questions!

Court case relating to 'separate legal entity'' and 'corporate veil.''? [ 0 Answers ]

Actully this for my assessment... Can you please help me out to find related case, any related website link.

Is this company lifted the veil [ 3 Answers ]

Ms A and Ms B are directors of Bee limited Company. They were very excited when they were told that they will forever enjoy limited liability. After the registration og the company, company had agreed to purchase some slimming machine from a supplier called Pretty Co. under the terms of purchase...

Does veil produce homosexuality? [ 3 Answers ]

According to statistics (few years back) in Pakistan 92% of AIDS cases are because of homosexuality. It is more common in NWFP (west northern area of Pakistan). Veil (hiding of face from men) culture is also common in NWFP. So my question is that is there any link between veil & homosexuality i.e....

Reversing Judgement + Settlement Agreement On Pierced Corporate Veil [ 1 Answers ]

I was the head of a c corp company that was paying the bills on a film production over a 4 week period. One of the contract employess entered into a contract for equipment rental, the majority of which was paid by my company, a portion was not. I was sued not as a corporation but as an individual...

Lifting of the corporate veil [ 2 Answers ]

Hi I've just started the company law subject this semester, I did not understand the "lifting of the corporate veil". Can you give me a detailed explanation on this matter. Regards MMM20

View more questions Search