Alter Ego Doctrine
/ˈɔːltər ˈiːɡoʊ ˈdɒktrɪn/
Definitions
- (n.) A legal principle allowing courts to disregard the separate legal personality of a corporation to hold its shareholders or parent company liable for the corporation's actions or debts.
The court applied the alter ego doctrine to hold the parent company responsible for the subsidiary’s liabilities.
Related terms
See also
Commentary
Used primarily to prevent fraud or injustice by treating related entities as one; drafting should clarify under what circumstances this doctrine applies.
This glossary is for general informational and educational purposes only. Definitions are jurisdiction-agnostic but reflect terminology and concepts primarily drawn from English and American legal traditions. Nothing herein constitutes legal advice or creates a lawyer-client relationship. Users should consult qualified counsel for advice on specific matters or jurisdictions.