Management and Organizational Studies 2276A/B Chapter Notes - Chapter 11: The Principle, The Sequence, Breakfast Cereal

• School: Western University
• Department: Management and Organizational Studies
• Course: Management and Organizational Studies 2276A/B
• Professor: Frederick King

Document Summary

Asking to lift the corporate veil on the grounds of fraud. After the judgment was obtained, no effort was made to secure funds. The sequence of the events raised a strong prima facie inference that the conveyance from clayton developments ltd. to excalibur was intended to defeat the rights of the plaintiff. It was necessary that the defendants find evidence to rebut the inference, defendants failed to meet the burden. Harrison used excalibur to strip the assets of baron to avoid payment to the plaintiff of the amount of the judgment. Without fraud or improper conduct, the courts can"t disregard the separate. A judge should not lift the veil simply because he believes it would be in the interest existence of a corporate entity of fairness or justice. One of the fundamental purposes of corporate existence is to limit the liability of the shareholders.