Corporations - United States National Bank v. Rupe: Disregarding the Corporate Entity
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Authors
Plucheck, Charlane J.
Issue Date
1982
Volume
15
Issue
Type
Journal Article
Language
Keywords
Alternative Title
Abstract
INTRODUCTION|One of the principle advantages of incorporation is that the stockholder's liability is generally limited to his contribution of capital. During the survey period the Nebraska Supreme Court dealt with the issue of limited liability and delineated four factors which it would consider in determining whether or not to disregard the corporate entity and allow shareholders to be held personally liable for the debts incurred by the corporation.|As a general rule the corporate entity will be disregarded when "used to defeat public convenience, justify wrong, protect fraud, or defend crime." In United States National Bank of Omaha v. Rupe, the Nebraska Supreme Court provided useful advice and specific factors to be considered by future plaintiffs when trying to pierce the corporate veil.|Usually the shareholders of a corporation are not liable for its debts or other obligations. In equity, however, the corporate entity may be disregarded and held to be the alter ego of a shareholder for the purpose of preventing injustice....
Description
Citation
15 Creighton L. Rev. 207 (1981-1982)
Publisher
Creighton University School of Law