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Bankruptcy | Case Law | Alter Ego
ALTER EGO
In re Audre, Inc., 216 B.R. 19 (9th Cir. B.A.P. 1997)
It is generally held that the separate corporate existence of a subsidiary will be recognized
absent illegitimate purposes unless (a) the business transactions, property, employees, bank and
other accounts and records of the corporation are intermingled, (b) the formalities of separate
corporate procedures for each corporation are not observed, (c) the corporation is inadequately
financed as a separate unit from the point of view of meeting its normal obligations; (d) the
respective enterprises are not held out to the public as separate enterprises; and (e) the policies of
the corporation are not directed to its own interest primarily, but rather to those of the other
corporation. H. Henn and J. Alexander, Laws of Corporations § 148 at 355-56 (3rd ed. 1983).
In re Folks, 211 B.R. 378, (9th Cir. B.A.P. 1997)
Purported creditor did not have standing to assert alter ego claim
International Brotherhood of Elec. Workers, Local Union No. 332, AFL-CIO v. Hyland Wilson
Elec. Contractors, Inc., 881 F.2d 820, (9th Cir. Cir. Cir. 1989)
Factors for disregarding corporation entity in 9301(a) cases
Firstmark Capital Corporation. v Hempel Financial Corporation., 859 F.2d 92 (9th Cir. 1988)
Wife cannot be liable for husband's and corporation's wrongdoing