Jon Alan Enochs

Corporation Shareholder’s Disputes

Most corporations that are created are not large conglomerate entities that have a staff of lawyers and accountants counseling them as to how to comply with their corporate governance. Instead most corporations are the equivalent of “Mom and Pop” businesses. These “Mom and Pop” corporations are run by people who treat the corporation essentially as a sole proprietorship. They create the corporation believing that the mere fact that they created the corporation is sufficient to insulate them from liability from creditors or third party claims. Often this trust is misplaced by the people running these “Mom and Pop” corporations.

A corporation is a legal entity and it is treated as an independent entity under the law. To maintain this independence a corporation must comply with the corporate formalities set forth within its bylaws and the California Corporations Code. Failure to comply with these formalities can and does frequently result in a claimant piercing the corporate veil. Maintaining a corporation is a complex endeavor and it is an endeavor that should not be undertaken without careful consideration as to the financial consequences of noncompliance.

I assist clients in their compliance with these corporate formalities as well as prosecute and defend claims of alter ego liability and claims involving piercing of the corporate veil.

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