Practice point: A corporation’s sole shareholder is the equitable owner and, in the absence of an adverse effect upon creditors’ rights, the corporation's property may be used in payment of or as security for personal debt.
Practitioners should note that a corporation may authorize its president to use corporate checks to pay personal debt.
Case: Masek v. Wichelman, NY Slip Op 08050 (1st Dept. 2009)
The opinion is here.
Tomorrow’s issue: Employment Law.
