In rare circumstances,courts are prepared to disregard the separate existence of a corporation and "lift the veil" to impose liabilities on those who control it.Which of the following is NOT one of the conditions that must be met for the court to impose liability on an individual?

Question

Quizplus · Accepted Answer

Being a shareholder of the corporation is not a necessary condition for the court to lift the veil and impose liability on an individual. The individual must, however, have control over the corporation and use that control to commit a fraud, a wrong or a breach of duty, and that misconduct must be the cause of the plaintiff's injury.

In Rare Circumstances,courts Are Prepared to Disregard the Separate Existence