I am a manager for a semipro team in Europe.
We need a quarterback – maybe you were drafted to AAL and havent found a team yet.
Please contact me on this email address: kriwor@vlr.dk

Best regards,
Kristian
Manager

“Piercing the corporate veil” comes up in Corporations and grew out of a desire to prevent individuals from escaping the consequences of their individually wrongful acts by using a corporate entity for criminal or fraudulent purposes. So when a corporate veil is pierced, the corporation’s creditors can go after the assets of its shareholders. That’s a radical concept because limited liability of shareholders is a bedrock of modern capitalism. So theoretically one should only ‘pierce’ when absolutely, positively necessary. Thus, judges will look at the totality of the circumstances to make their ruling, and choose to pierce the veil only if it’s necessary to prevent fraud or achieve equity.

Under the undercapitalization test, failure to provide adequate capitalization for the corporation AT THE TIME OF FORMATION is an important element, however MOST courts are reluctant to pierce the veil solely on this basis.

Per one attorney: “Whether a corporation was adequately capitalized when it was formed is a relevant determination with respect to this factor, the idea being that insufficient capital infusion is a red flag that a corporation was started as a sham. Proving a corporation that was adequately funded on formation became undercapitalized due to business losses will not suffice. Nevertheless, IF shareholders fail to infuse needed capital after an existing corporation significantly changes the nature of its business or substantially expands, this may constitute undercapitalization sufficient to satisfy the court.”

So either show Katz didn’t properly infuse the League with capital from the get-go, or that he didn’t do so later. Katz will argue that he properly funded the league, and that the lack of a television contract and/or other deals forced the League under.