Full question:
can personal e-mails intermingled with business e-mails sent and received on business computers create a risk to the corporate veil protection?
- Category: Corporations
- Date:
- State: New Jersey
Answer:
Intermingling personal emails with business emails on company computers can pose a risk to the corporate veil protection. This risk is particularly relevant in cases where a business owner mixes personal and business finances, such as using corporate funds for personal expenses. When this happens, courts may view the corporation as the legal alter ego of the owner, leading to potential liability for personal actions.
In New Jersey, this concept is known as the 'alter ego doctrine.' If an injured party can demonstrate that the corporation is merely an extension of the owner, the court may hold the individual personally accountable for damages. Courts will assess whether the owner treated the business as a separate entity and if maintaining the corporate veil would be unjust.
The criteria for piercing the corporate veil include: the owner disregarding the corporate entity, a unity of interest between the owner and the corporation, and the potential for fraud or injustice if the veil is upheld. Whether personal use of corporate email is sufficient to pierce the veil depends on the specific circumstances of the case.
This content is for informational purposes only and is not legal advice. Legal statutes mentioned reflect the law at the time the content was written and may no longer be current. Always verify the latest version of the law before relying on it.