Alan owns 90 percent of the shares of Whitesoft,Inc.He wrongfully uses his dominance to force the company to spend money on ventures that benefit him alone.When sued by other shareholders,Alan defends by arguing that Whitesoft as a whole is liable,but he was not personally liable as he was a mere shareholder of the company.Which of the following doctrines is the court,presiding over this case,likely to adopt in order to enforce justice?

Question

Quizplus · Accepted Answer

The court is likely to adopt the alter ego doctrine. This doctrine allows the court to disregard the corporate entity and hold individual shareholders or officers personally liable for the corporation's actions if they have disregarded the separateness of the corporation from themselves, using it as their alter ego. Alan's use of his dominance to force the company to spend money for his benefit alone indicates such wrongdoing, and as a result the court can hold him personally liable for his actions under the alter ego doctrine.

Alan Owns 90 Percent of the Shares of Whitesoft,Inc