Corporate Family Law and Legal Definition
Corporate family means a group of corporations consisting of a parent corporation and all subsidiaries in which the parent corporation owns directly or indirectly a 100 percent interest. A corporate family has both advantages and disadvantages.
The parties cannot choose to accept the benefits incident to a corporate enterprise and at the same time brush aside the corporate form when it works to their (shareholders') detriment. The advantages and disadvantages of the corporate structure should be seriously considered and evaluated at the time such organization is contemplated, and, after incorporation is selected, the shareholders cannot be heard to argue that the courts should not treat them as a corporation for some purposes and as a corporation for other purposes, whichever suits their present economic interest.[In Sams v. Redevelopment Authority of New Kensington, 244 A.2d 779 (Pa. 1968)]