Question
Joe and Ann and their three daughters are the shareholder, directors and officers of their family owned restaurant the Top Class cafe incorporated. They formed
Joe and Ann and their three daughters are the shareholder, directors and officers of their family owned restaurant the Top Class cafe incorporated. They formed their corporation to avoid liability for any corporation business debts. Both Joe and Ann worked in the restaurant full time and the daughters worked every weekend. At the end of the week, Joe would see how much they made in sales and then he would give the girls cash payments and then he and Ann would take the rest after paying taxes. They had not held any shareholders or directors meetings but said, hey this is a family business and we trust one another and don't need all that formality. After three years the business was now in serious debt and could not make payments on the rent, food vendors and other creditors and decided to close. The creditors sued Top Class for unpaid bills and after learning how they ran the business asked the court to make Joe and Ann and the girls personally liable. the creditors would ask the court to:
Group of answer choices
a. pierce the corporate veil
b. seek a special sale
c. remove the corporate charter
d. seek a summary judgement
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