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Jury Instruction - 1.9.5.2 Subsidiary As Alter Ego Of Parent...

Clark Nevada Jury Instruction - 1.9.5.2 Subsidiary As Alter Ego Of Parent Corporation

Name: Clark Nevada Jury Instruction - 1.9.5.2 Subsidiary As Alter Ego Of Parent Corporation
Brand: US Legal Forms
Rating: 4.64 (366 reviews)

Category:

Federal - Jury Instructions

State:

Multi-State

County:

Clark

Control #:

US-11CF-1-9-5-2

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This form contains sample jury instructions, to be used across the United States. These questions are to be used only as a model, and should be altered to more perfectly fit your own cause of action needs.

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In the U.S., the general rule is that parent companies generally are not liable for the actions of its subsidiaries unless the plaintiff can prove an agency or alter ego relationship.

When a character lives more than one life, having a secret identity or taking on more than one personality, that alternate personality is their alter egofor instance, think of Spider-Man, who is the alter ego to Peter Parker.

The alter egos may be triggered by stressors. The various alter egos may refuse each other, conflict with one another, be hostile to one another or not want to acknowledge the others existence.

Legal doctrine whereby the court finds a corporation lacks a separate identity from an individual or corporate shareholder, resulting in injustice to the corporation's debtors.

There are, nevertheless, two general requirements: (1) that there be a unity of interest and ownership that the separate personalities of the corporation and the individual(s) no longer exists, and (2) that, if the acts are treated as those of the corporation alone, an inequitable result will follow.

While the parent company does hold influence over the subsidiary company, the subsidiary is a legally independent entity. Whether the parent company is the sole or majority stockholder of the subsidiary company, it will have virtually total control of the subsidiary company's operations.

Under the doctrine of alter ego (also known as piercing the corporate veil), individuals may be liable for the actions of their corporations in certain circumstances.

A court will pierce the corporate veil when it finds that the corporation is an agent of its shareholder, and will hold the principal vicariously liable, due to the respondeat superior doctrine.

When a subsidiary is merely a tool of the parent used to commit criminal conduct or the corporate form is disregarded, a parent company can be held criminally liable under the mere instrumentality theory. This is more or less an extension of the concept of piercing the corporate veil.

If the parent company is sued, its ownership interests in subsidiary businesses are considered the company's personal property. Creditors can attempt to attach ownership interests in other businesses and, depending upon the debt collection laws in the state where the lawsuit is filed, may or may not succeed.

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Clark Nevada Jury Instruction - 1.9.5.2 Subsidiary As Alter Ego Of Parent Corporation

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Is a subsidiary liable for the parent company?

What is an example of an alter ego?

What causes an alter ego?

What is alter ego doctrine?

What are the elements of alter ego?

What is the relationship between a parent company and subsidiary?

What is the difference between alter ego and piercing the corporate veil?

How do you pierce the corporate veil?

Can subsidiary be held liable for a parent company?

Can a parent company be sued for a subsidiary?

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What does the Clark Jury Instruction 1.9.5.2 Subsidiary As Alter Ego Of Parent Corporation mean?

What is the role of a subsidiary company in this context?

Why would a subsidiary be treated as the alter ego of its parent corporation?

What factors determine if a subsidiary is considered an alter ego of its parent corporation?

What legal consequences arise if a subsidiary is treated as the alter ego of its parent corporation?

Can a subsidiary avoid liability by claiming to be an alter ego of its parent corporation?

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