MLchartDataset catalogue

Undercapitalization

Term · Law · MLC-T-LAW-005039

A situation where a business or corporation does not have sufficient financial resources, such as equity or debt, to cover its operational expenses and liabilities. This can expose creditors to undue risk if the business fails. Courts may disregard the corporate veil in cases of extreme undercapitalization.

Table 1. Record
IdentifierMLC-T-LAW-005039
FieldLaw
Record as JSON 
{
  "id": "MLC-T-LAW-005039",
  "term": "Undercapitalization",
  "field": "Law",
  "definition": "A situation where a business or corporation does not have sufficient financial resources, such as equity or debt, to cover its operational expenses and liabilities. This can expose creditors to undue risk if the business fails. Courts may disregard the corporate veil in cases of extreme undercapitalization.",
  "url": "https://mlchart.com/terminology/law/undercapitalization/"
}

Record 5,150 of 5,441 in Law terminology (MLC-0107). Request the full dataset.