Rex forms Shell Company to assume debts that he does not wish to pay. The firm is not intended to make a profit, and Rex does not provide it with sufficient capital. This most likely warrants

Question

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Piercing the corporate veil is a legal decision to treat the rights or duties of a corporation as the rights or liabilities of its shareholders or directors. In this case, since Rex is using the shell company to avoid debts without intending to make a profit and not providing sufficient capital, it could be seen as an abuse of the corporate form, justifying the piercing of the corporate veil to hold Rex personally liable for the debts.

Rex Forms Shell Company to Assume Debts That He Does