Question

Angela is the president and majority shareholder of Calypso Corporation, a publicly traded company. Angela recently purchased (without the knowledge of other shareholders) a vacation home for her family and vehicles for her children under the name of the corporation. The children are not employees of Calypso. In a lawsuit brought against Calypso, the court disregarded the corporate entity because it

Answer 1

Answer: Comingled the assets of the business with that of the shareholders.

Step-by-step explanation:

Normally, the shareholders of a company are protected by the limited liability clause which limits any liability they might incur from a business to the amount that they put into the business.

There are times however, when the Courts would remove this protection clause and one of those times is if the shareholders of the business mix their personal assets with that of the company.

This is what happened here so the Court would be in the right to remove the Corporate entity clause that protects shareholder liability and hold Angela directly responsible.