2002), the Wyoming Supreme Court held that the equitable doctrine of piercing the veil was an available remedy under the Wyoming Limited Liability Company Act. For instance, in Kaycee Land & Livestock v. Several courts have determined that the alter ego doctrine may also apply to LLCs. An example of an alter ego is someone with whom you have been friends since childhood. By comparison, however, owners of limited liability companies may structure their business in a manner similar to a corporation so that members and managers are shielded from personal liability for the debts of the Limited Liability Company (LLC). The definition of an alter ego is someone with whom you are very close friends. When a court applies it, the court is said to pierce the corporate veil.Ĭourts have not traditionally applied the alter ego doctrine to other business forms, such as partnerships and limited partnerships, because partners generally do not enjoy the same form of limited liability as corporate stockholders, officers, and directors. Definition (noun) a very close and trusted friend who seems almost a part of yourself. In a lawsuit complaint, it might be stated (pleaded) that.
The alter ego doctrine is also known as the instrumentality rule because the corporation becomes an instrument for the personal advantage of its parent corporation, stockholders, directors, or officers. alter ego - Dictionary definition and meaning for word alter ego. In the case of corporations, proving one is an alter ego is one way of piercing the corporate veil. Once a person creates an alter ego, they start dreaming about the same and living a life of their own. Here, we will talk about alter ego in the terms that it is a person that people create within themselves and relate to the person in terms of making it an ideal. ' Alter ego 'Is a Latin phrase whose meaning might be something like'my other self'or'my alternative self.' If you want to know your alter ego, you will want to know your other self, which is characterized by having a personality different from yours. A parent corporation is the alter ego of a subsidiary corporation if it controls and directs its activities so that it will have limited liability for its wrongful acts. People have different views on what exactly alter ego is. A doctrine used by the courts to ignore the corporate status of a group of stockholders, officers, and directors of a corporation in reference to their limited liability so that they may be held personally liable for their actions when they have acted fraudulently or unjustly or when to refuse to do so would deprive an innocent victim of redress for an injury caused by them.Ī corporation is considered the alter ego of its stockholders, directors, or officers when it is used merely for the transaction of their personal business for which they want immunity from individual liability.
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