NorthWest Biotherapeutics Inc (NWBO)

[learningcurve2020]

Factors that a court may consider when determining whether or not to pierce the corporate veil include the following:[29][1]
* Absence or inaccuracy of corporate records;
* Concealment or misrepresentation of members;
* Failure to maintain arm's length relationships with related entities;
* Failure to observe corporate formalities in terms of behavior and documentation;
* Intermingling of assets of the corporation and of the shareholder;
* Manipulation of assets or liabilities to concentrate the assets or liabilities;
* Non-functioning corporate officers and/or directors;
* Significant undercapitalization of the business entity (capitalization requirements vary based on industry, location, and specific company circumstances);
* Siphoning of corporate funds by the dominant shareholder(s);
* Treatment by an individual of the assets of corporation as his/her own;
* Was the corporation being used as a "façade" for dominant shareholder(s) personal dealings; alter ego theory;
It is important to note that not all of these factors need to be met in order for the court to pierce the corporate veil. Further, some courts might find that one factor is so compelling in a particular case that it will find the shareholders personally liable. For example, many large corporations do not pay dividends, without any suggestion of corporate impropriety, but particularly for a small or close corporation the failure to pay dividends may suggest financial impropriety.[30]