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Louisiana Revised Statutes Tit. 12, § 1705. Business organizations; juridical personalities

Current as of January 01, 2023 | Updated by Findlaw Staff

A. The separate juridical personality of a business organization shall not be disregarded as between one business organization and another except on grounds that would justify disregarding the separate personality of a business organization as between the business organization and a natural person.

B. Notwithstanding Subsection A of this Section, the separate juridical personality of a business organization may not be disregarded merely because one or more of the following circumstances exist:

(1) They control one another or are under the common control of the same person or business organization.

(2) They have common directors, officers, shareholders, members, managers, partners, or employees.

(3) They have common offices.

(4) They are subject to unified administrative control.

(5) They utilize a centralized accounting system.

(6) One business organization finances, incorporates, or organizes another.

(7) One business organization makes properly documented payments on behalf of another or makes properly documented use of the property of another.

(8) The employees of one business organization provide properly documented services for another.

(9) One business organization receives no business other than that given to it by another.

C. For purposes of this Section, the term “business organization” means a business corporation, nonprofit corporation, limited liability company, partnership, trust, or other form of business organization that is treated as a juridical person or legal entity pursuant to the laws of the state or country under which it is incorporated or organized.

D. (1) This Section shall not affect any legal or regulatory action taken by the commissioner of insurance pursuant to the Louisiana Insurance Code, Chapter 9 of Title 22 of the Louisiana Revised Statutes of 1950.

(2) This Section shall not affect any law or administrative rule that permits or requires a group of business organizations to be consolidated, unified, or disregarded for the purposes provided in the applicable law or administrative rule.

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Cite this article: FindLaw.com - Louisiana Revised Statutes Tit. 12, § 1705. Business organizations; juridical personalities - last updated January 01, 2023 | https://codes.findlaw.com/la/revised-statutes/la-rev-stat-tit-12-sect-1705/

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