The alter ego doctrine is used in labor law to determine whether an
employer is secondary or neutral in a labor dispute. It is a legal doctrine
which courts use to disregard the limited personal liability that attches
to acts taken in a corporate capacity when there is in reality no separate
identity of the individual and corporation.
Some of the factors courts consider in determining whether the alter
ego doctrine applies include:
- Failure to hold meetings.
- Commingling corporate with personal funds.
- Using corporate accounts for personal loans or other personal purposes.
- Negotiating loans or leases between the corporation and a principle
other than at an arm's length
basis.
- Using corporate assets continually for personal use.
- Failing to carry reasonable insurance on the corporation having
due regard to the risks inherent in the
corporation's business.
- Failing to set up a review mechanism as to decisions so that all
aspects of a proposed course of action
will be considered.
- Using the corporation or manipulating its assets for illegal
transactions.
Relevant legal forms include:
Jury Instruction - 1.9.5.1 Corporation As Alter Ego Of Stockholder
Jury Instruction - 1.9.5.2 Subsidiary As Alter Ego Of Parent Corporation
Related Terms
Terms with 'Alter' or 'Ego'
