Question
Bob incorporated Oil Inc. and he owed 100% of the stock of the corporation. Oil Inc. contracted with the Shell oil refinery (Shell) to supply
Bob incorporated Oil Inc. and he owed 100% of the stock of the corporation. Oil Inc. contracted with the Shell oil refinery (Shell) to supply crude oil to Shell. Shell paid a $200,000 deposit to Oil Inc. for the expected crude oil. But, Oil, Inc. never provided any crude oil to Shell and Oil Inc. refused to return the $200,000 deposit to Shell. Oil Inc. did, however, pay to Bob $200,000 for his salary as president of the Oil Inc. Also, Oil Inc. only sometimes adhered to its bylaws, was capitalized with $100 when it first began in business, and sometimes Oil Inc. paid Bob's personal bills. Shell sued Oil Inc. and obtained a judgment for $200,000 against Oil Inc. but Oil Inc.'s assets total just $10 so the corporation can't pay the judgement. Bob, however, has a net worth of ten million dollars.
A. Does Shell have any way of collecting any of the $200,000 judgement from Bob? Discuss.
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