Janelle Golino controls 65 percent of the voting shares of J-Go Web Solutions Inc. Golino is also

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Janelle Golino controls 65 percent of the voting shares of J-Go Web Solutions Inc. Golino is also the board chair and CEO of J-Go, and she controls the board of directors, all of which she elects by exercising the voting power of her shares. Her 16-year-old daughter is a nonvoting member of the board of directors, for which service she receives annual compensation of $45,000, half the fee paid to the voting directors. J-Go’s voting directors have approved the fee paid to Golino’s daughter. Golino has elected her daughter to the board of directors because her daughter is extremely bright and experienced for someone of her age, having attended business meetings with her mother for the last three years and regularly discussed business decisions with her mother for the last five years. Thirty-five percent of J-Go’s voting shares are owned by public investors, as are all the shares that have no right to vote in directors elections. When J-Go has a dispute with one of its creditors and fails to pay a debt, the creditor asks a court to pierce the veil of J-Go and hold Golino personally liable for the debt. Is there grounds for the court to find Golino personally liable for the obligations of J-Go?

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Business Law The Ethical Global and E-Commerce Environment

ISBN: 978-1259917110

17th edition

Authors: Arlen Langvardt, A. James Barnes, Jamie Darin Prenkert, Martin A. McCrory

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