In the recent case of Leek v. Cooper (2011) 194 Cal.App.4th 399, the court addressed the issue as to whether or not the sole shareholder of a corporation that was operating a car dealership could be held individually liable for age discrimination on the basis that the sole shareholder had actual control over the affairs of the business.

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In California, both the Secretary of State’s office and the Franchise Tax Board have the authority to suspend a California corporation under certain situations.

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In order to be protected by limited liability, a corporation must act like an independent legal entity and follow through with its corporate formalities of properly addressing corporate records, regular meetings and financial statements.

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