Alter ego doctrine

Alter ego doctrine

What does Alter ego doctrine mean in American Law?

The definition of Alter ego doctrine in the law of the United States, as defined by the lexicographer Arthur Leff in his legal dictionary is:

A doctrine pursuant to which a court, deciding that a corporation has been but the alter ego of its stockholders, will hold them responsible for their acts done in the corporation’s name, i.e., will be led into disregarding corporate entity with respect to the claim of some injured third party. As one can imagine, since one of the major purposes of doing business in corporate form is precisely to use it as one’s business alter ego, special and extreme disregard or abuse of corporate form will be required

before the alter ego doctrine may be successfully invoked.


Posted

in

by

Tags:

Comments

Leave a Reply

Your email address will not be published. Required fields are marked *