Question
10. I Dream of Genie, Inc. is a Florida corporation that manufactures face coverings. The founder and CEO of the corporation, Tony Nelson, is also
10. I Dream of Genie, Inc. is a Florida corporation that manufactures face coverings. The founder and CEO of the corporation, Tony Nelson, is also its majority shareholder. The only other shareholder is Mr. Nelsons close friend, Roger Healey. I Dream of Genie, Inc. is considered a close corporation and Mr. Nelson likes to keep it that way. Since the only other shareholder is his friend, Mr. Nelson often skips holding the annual meetings and rarely keeps any records. Unfortunately, during the COVID pandemic, the I Dream of Genie, Inc. face coverings were at the center of multiple products liability lawsuits. In one of the lawsuits, the plaintiff wants to name Mr. Nelson, personally, as a defendant. The I Dream of Genie, Inc. lawyers respond that the corporations shareholders or directors cannot be held personally liable for the actions of the corporation. In order to pierce the corporate veil, the plaintiffs will need to show:
A. That Mr. Nelson dominated and controlled the corporation to such an extent that the corporations independent existence was in fact nonexistent and that Mr. Nelson was in fact an alter ego of the corporation.
B. That the corporate form must have been used fraudulently or for an improper purpose.
C. That the fraudulent or improper use of the corporate form caused injury to the claimant.
D. All of the above.
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