ADM 3360 Lecture Notes - Lecture 6: Sole Proprietorship, Real Estate Broker, Secured Creditor

• School: University of Ottawa
• Department: Administration
• Course: ADM 3360
• Professor: Audrey Giles

Document Summary

General nature of a corporation; relationship among parties: separate legal entity, separate legal person, with corporate existence separate from share ownership. Salmon case being a creditor of one"s own corporation permitted, provided the corporation was not established as an instrument of fraud ( lifting the corporate veil in such fraudulent circumstances) contemporary example: chan case p397 . Salmon: he gets a mortgage on the assets of the business where the assets were the assets of his sole proprietorship, transferred to a corporation that salmon controlled: chan case: cost award against one corporation. New corporation formed to avoid payment of the cost award. Alter ego theory (similar to lifting the corporate veil who is the directing mind and will ?) Separate existence: rule in salomon"s case and lifting the corporate veil : salomon"s case (text, pp. Inc. loans xyz inc. ,000,000, secured on inventory.