Question

Wilson, bart and susan fields decide to set up a corporation together called fields, inc. they follow the correct procedures for establishing their corporation, but once it is established, they do not hold regular corporation meetings. since they are all related, they just conduct their communications and business related to the company at their family gatherings and over casual phone conversations. what will happen when fields, inc. is sued for failing to pay some outstanding debts?

Answer 1

Answer:

The answer is pierce the corporate veil due to the failure to hold required corporation meetings.

Explanation:

For this question, it is necessary to point out the following aspects: all the founders of Fields, Inc. are related and they don't meet after the company is established. It means that there might be many things that are not mentioned or just simply ignored, meaning that the relatives are failing to hold require corporation meetings because the company is being affected by the lack of this meetings.

Answer 2

Let's re-read this part:

"they follow the correct procedures for establishing their corporation, but once it is established, they do not hold regular corporation meetings. since they are all related, they just conduct their communications and business related to the company at their family gatherings and over casual phone conversations."

Based on that information, you know that they will NOT dismiss the case against Field Inc. Although, they will not pierce the corporate veil.