21 May EXPLAIN YOUR CONCLUSION AFTER YOUR ANALYSIS IS COMPLETED.
William Rich is an extremely wealthy entrepreneur who has owned several businesses. William sold some of the businesses while others failed and ended up in bankruptcy. Most recently, William incorporated DSM with himself as the sole shareholder. He invested $5,000 in the company as a capital contribution. DSM then purchased 1,000 acres of land for $500,000 with the intent to develop an upscale subdivision. Nine months later, DSM became unable to pay its bills. As one of DSM’s creditors, your business seeks to pierce the corporation and hold William personally liable for the company’s debts. Will your business be successful in holding William liable for DSM’s debts? What information is important when conducting this type of investigation? Explain the best legal and ethical arguments to hold William liable and then explain the best counter arguments in this situation (the arguments that William would make to deny liability). Explain your conclusion after your analysis is completed.
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