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As an Atlanta litigation attorney, one issue that comes up frequently when I am involved in a lawsuit for or against a corporation or other legal entity is how can the corporate entity be disregarded to subject the officers and directors to suit---otherwise known in Georgia as piercing the corporate veil. One of the main ways is a showing of illegality, fraud or misrepresentation on the part of the officers and directors regarding the subject matter of the lawsuit.
Instances where courts often pierce the corporate veil are when corporations, officers and directors are actively evading a contract or tort obligation, taxes, trying to delay, hinder or defraud creditors and where it can be shown that they are trying to perpetrate a fraud or other injustice by hiding behind the corporate veil.
It is important to keep the concept of piercing the corporate veil in mind both when either beginning the process of filing a lawsuit or defending against one.
One of the first issues that must be determined when deciding whether to sue a corporation or in defense of a lawsuit filed against your corporation is where is the lawsuit properly filed against the corporation---in other words what court or courts have jurisdiction over that corporation.
There are several answers and many times several courts where jurisdiction over a corporation can be established, including:
1. The contract at issue may have a provision stating where jurisdiction lies for any suit regarding the rights of the parties to the Contract;
2. If one party is a Georgia corporation and the other parties are foreign corporations or individuals, suit can be filed in Federal Court in Georgia in the District where the Georgia corporation resides; and
3. As to Parnerships, the Partnership can be sued where one or more of the partners reside;
As a litigation attorney in atlanta, deteriming where a corporation resides is one of the most critical issues to determine before filing suit for a client or answering a suit on behalf of a client.
As divorce attorneys alpharetta ga we are often asked what the procedure is to receive an annulment in Georgia. First, annulments can only be granted by the superior courts in Georgia. An annulment is started by one party filing a petition for annulmnet and the spouse then must be personally served with the petition. Thereafter, the defendant spouse has thirty days to file his or her answer to the petition. If the defendant spouse raises grounds that an annulment should not be granted then he or she can also request temporary alimony and attorney's fees. If no answer is filed after thirty days, the petitioner can move forward to have the Court award the annulment in open court.
As an Atlanta lawyers, my clients are often faced with responding to garnishment proceedings filed by a plaintiff to recover any assets held by the company on behalf of an employee or customer. Often the client does not realize that in Georgia, the failure of the garnishee (the company served) to respond to the garnishment could result in the judgment against the employee or client to be applied agaisnt the company and its own assets for the full amount of the underlying judgment.
In Georgia, if the garnishee does not answer the garnishment with 30 or 45 days depending on whether it is a regular garnishment or a wage garnishment, the underlying judgment becomes a judgment agaisnt the company. However, the company then has sixty days to open default to vacate the judgment against it for failure to answer the garnishment.
Obviously, it is always more purdent to respond to the garnishment on time to avoid unnecessary risk and expense. As an Atlanta business litigation lawyers, it is always less expense for the client to avoid additional litigation over issues such as garnishments, especially if the client does not have any assets of the defendant to hold for the plaintiff. For whatever reason, I find that most company's that have failed to answer are those that never had assets and assumed they therefore did not have to still answer. This is not the case. Prudent responses to any served complaint whether a garnishment or other proceeding is always important, of course, after speaking to and being advised by your company's attorney.
Georgia has several requirements that must be met for any director of a corporation:
1. Must be a natural person (a corporation cannot be a director) who is at least 18 years old;
2. Need not be a Georgia resident unless the bylaws or articles of incorporation require it;
3. Need not be a shareholder unless the bylaws or articles of incorporation require it;
4. Need not be a United States Citizen.
A board of directors must consist of at least one individual. The exact number is controlled by the articles of incorporation and bylaws.
There are many other considerations in forming a corporation. It is recommended that you speak to an Atlanta corporate lawyer before proceeding further.
As an Atlanta business litigation lawyers, an interesting question I often get from clients looking to sue on behalf of his or her company is whether a dissolved company can still maintain a lawsuit in Georgia. The answer is yes but only if the lawsuit is in furtherance of the winding up of the company's affairs and liquidate the company. This is because the Corporate Code states that a dissolved company can only do acts aimed at winding up and liquidated the business. Whether or not the specific lawsuit contemplated fits within the definition of an action necessary to wind up and liquidate the company is a question that is handled by Courts on a case by case basis.
If you or your business have been sued by a dissolved corporation, visit our main website to learn more about how our commercial litigation lawyers can help you.