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Rhys owns Solar Fuel Corporation. Rhys uses Solar Fuel’s funds to pay his personal expenses, creates Thermal Power Corporation to engage in the same business as Solar Fuel, transfers Solar Fuel’s assets to Thermal Power, and petitions Solar Fuel into bankruptcy. This most likely warrants _________.A) ​a bonus to Rhys for financial maneuvers.
B) ​a discharge for Solar Fuel in bankruptcy.
C) ​a pierce of the corporate veil.
D) ​a review of Thermal Power's articles of incorporation.

Respuesta :

Answer:C) ​a pierce of the corporate veil.

Explanation:piercing the corporate veil refers to the removal of the legal separation of shareholders and the corporation itself. In essence, the corporate veil is the legal standing in which you’re protected from the liabilities and debts of your business.

Simply speaking, this “veil” is recognized as a legal division of your personal assets and self from your business.

Corporate veils are only pierced when the shareholders or owners use the corporation in a fraudulent manner, or they fail to separate the business assets from their own. As a business owner, it is possible to pierce the corporate veil by not adhering to the formalities of owning a corporation.

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