________ is a doctrine that says if a shareholder dominates a corporation and uses it for improper purposes, a court can disregard the corporate entity and hold the shareholder personally liable for the corporation's debts and obligations.

Question

Quizplus · Accepted Answer

The doctrine described in the question is piercing the corporate veil. This doctrine allows a court to disregard the separate legal entity of a corporation and hold shareholders personally liable for the corporation's actions if the shareholder uses the corporation for improper purposes or dominates it in a way that is unfair or harmful to other shareholders or creditors. The other choices are unrelated to this doctrine. Self-dealing refers to a situation where a corporate officer or director benefits personally from a transaction with the corporation. Fruit of the poisonous tree is a legal principle related to evidence obtained illegally. Right of first refusal is a contract right that gives a party the option to buy property before it is offered for sale to others.

________ Is a Doctrine That Says If a Shareholder Dominates