Defective Corporation – Legal Capstone

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How the former husband was dealt with for not paying past-due support in this case: Geittmann v. Geittmann, 126 Ill. App. 3d 470 (5th Dist. Ct. of Appeals 1984)?

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Mixing business and personal finances is something that should never be done, especially for accounting reasons and tax filings. Per our scenario, Jed pays his personal bills from this business account. This simple fact should allow our firm to “pierce the corporate veil” that Jed is hiding behind. The simple fact that there is no line between what is personal and what is the corporation would allow our firm to open the books and accounting records for the business and show that Jed has been hiding assets behind the corporate wall. With what has been described, the corporation is nothing more than a shell company.

References

Newman, V. K. (2014). Certified Paralegal – Review Manual. Cengage

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