Complete Question:
A court will disregard the corporate form and ___ the corporate ___ in five circumstances: first, if a party is ___ into dealing with the corporation rather than the individual; second, if the corporation is set up to always be ___ or is ___ capitalized; third, if the corporation is formed to ___ an existing legal obligation; fourth, if the corporation fails to follow the statutory corporate ___ ; and fifth, if the personal and corporate interests are ___ so that the corporation has no separate identity.
Answer:
A court will disregard the corporate form and Pierce the corporate Veil in five circumstances: first, if a party is Tricked into dealing with the corporation rather than the individual; second, if the corporation is set up to always be Insolvent or is Thinly capitalized; third, if the corporation is formed to Evade an existing legal obligation; fourth, if the corporation fails to follow the statutory corporate Formalities ; and fifth, if the personal and corporate interests are Commingled so that the corporation has no separate identity.
Explanation:
These are the conditions in which the court will disregard the corporate form and this is also a security to the rights of the investors which secure their position.
