Inadequate Capitalization of the Construction Firm: Piercing Corporateness Under the Alter Ego Theory

Piercing the corporation veil is the most litigated issue in corporate law. Although a corporation is recognized as a legal entity having limited liability to the individual shareholder, officer, and director, there are many instances when the court will ignore corporateness, and hold the shareholder, officer, and director liable. One particular area that is most litigated is the question of proper capitalization of the firm. For the newly formulated construction organization, the issue of adequate capitalization has significant ramifications in terms of personal liability shielding