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Simple English definitions for legal terms

instrumentality rule

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A quick definition of instrumentality rule:

The instrumental rule is a principle that says if one corporation controls another corporation to a great extent, the controlled corporation is treated as a subsidiary of the controlling corporation. This means that the controlling corporation has a lot of power over the controlled corporation and can make important decisions for it. It's like when a big brother or sister helps their younger sibling with their homework or makes decisions for them because they are not old enough to do it themselves.

A more thorough explanation:

The instrumentality rule is a principle that states that a corporation can be considered a subsidiary if it is controlled to a significant extent by another corporation. This means that the controlling corporation has a significant influence over the subsidiary's operations and decision-making processes.

For example, if Corporation A owns a majority of the shares in Corporation B and has the power to appoint the majority of the board of directors, then Corporation B can be considered a subsidiary of Corporation A under the instrumentality rule.

Another example is when a parent company creates a separate subsidiary to carry out a specific business function, such as marketing or research and development. The subsidiary is controlled by the parent company and operates under its direction, making it subject to the instrumentality rule.

The instrumentality rule is important in determining the legal liability of corporations. If a subsidiary is found to have engaged in illegal activities, the parent company may also be held responsible under the principle of vicarious liability.

instrumentality | instrumenta noviter reperta

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THATS SO FUNNY
i cant i would go crazy
JumpySubsequentDolphin
20:50
i need to know who decided to do that.
JumpySubsequentDolphin
20:50
omg im on a plane weeeee
the devil
youre on a plane??? LSD made the mile high club??
20:50
yo splitterus are you in school already
20:50
it says ur c/o 2027
JumpySubsequentDolphin
20:51
@SplitterusClitterus: HAHAH yes
ur user is hilarioussss and no i just graduated this may and am now applying ---also im out of messages so ill take a lil
20:52
roger dat. see u in heck
im back, r u applying this cycle too
JumpySubsequentDolphin
21:32
this child fell asleep on me
JumpySubsequentDolphin
21:32
im so uncomfortable
just push him off the entire seat
JumpySubsequentDolphin
21:34
LMAOOOO
JumpySubsequentDolphin
21:35
no he’s literally like 8 and he fully just put his head on my bicep and slept
JumpySubsequentDolphin
21:35
he has since moved
22:12
@SplitterusClitterus: me yesterday
gulc baby pls text me back... i miss you ...... :(
22:23
i just went into a discord vc and yelled "YALL I JUST GOT INTO J.M. SCHOOL OF LAW"
22:24
people were getting excited :sob:
22:25
then someone was like "what does jm stand for" and i was like .. well
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@JumpySubsequentDolphin: wait this is so cute, also where r u going
JOE MBIDEN
JumpySubsequentDolphin
22:39
@splitty Oregon!
oh yay for what thats so random
JumpySubsequentDolphin
22:45
haha my brother and sister in law live there
so cutie oregon is beatiful
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