Posts Tagged ‘manager liability’
Demise of the Notion That Alter Ego Claims Belong to the Bankruptcy Estate
Shaoxing County Huayue Import & Export v. Bhaumik In Shaoxing County Huayue Import & Export v. Bhaumik (2011) 191Cal.App. 4th 1189, a creditor of a bankrupt corporation sued in state court to recover payment from an individual based on an alter ego theory of liability. The individual argued that the alter ego claim belonged to…
Read MoreCalifornia rejects “zone of insolvency” theory of director liability
The general rule is that directors of a corporation owe no duty to creditors because it is the shareholders who own a corporation. From an economic perspective, when a corporation is solvent, it is the shareholders who are the residual claimants of the corporation’s assets and who are the residual risk bearers. As long as…
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