Opinion ID: 2032938
Heading Depth: 1
Heading Rank: 8

Heading: failure to pay dividends

Text: Although the appeal of the dismissal of Lawrence's petition for dissolution must be dismissed, Lawrence's assignment of error relating to the alleged failure to pay reasonable dividends relates in part to the second cause of action in his counterclaim in the declaratory judgment action, wherein he requested damages in the amount of the dividends that should have been paid. This claim, however, is properly brought against Airlite, which is not a party to the declaratory judgment action. Generally, a corporation is viewed as a complete and separate entity from its shareholders and officers, who are not, as a rule, liable for the debts and obligations of the corporation. Nelson v. Lusterstone Surfacing Co., 258 Neb. 678, 605 N.W.2d 136 (2000). A plaintiff seeking to pierce the corporate veil must allege and prove that the corporation was under the actual control of the shareholder and that the shareholder exercised such control to commit a fraud or other wrong in contravention of the plaintiff's rights. Wolf v. Walt, 247 Neb. 858, 530 N.W.2d 890 (1995). The record establishes that the corporation was not under the actual control of either Gertrude or Norwest. Therefore they cannot, as a matter of law, be held liable for any failure of Airlite to pay reasonable dividends. As Airlite itself is not a party to the declaratory judgment action, Lawrence's assignment of error is without merit.