Alter Ego Law & Legal Definition
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
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