Law Dictionary

Deep Rock doctrine

noun

Legal Definition of Deep Rock doctrine

  1. :  a doctrine holding that the claim of a stockholder and especially a stockholder with controlling interest who makes a loan to his or her own corporation will be subordinated to the claims of outside creditors if the corporation is deemed undercapitalized

Origin and Etymology of deep rock doctrine

from Deep Rock, a debtor corporation found to have been used for fraudulent transfers to its parent corporation in the Supreme Court case Taylor v. Standard Gas and Electric Co. (Deep Rock), 306 U.S. 307 (1939)


Seen and Heard

What made you want to look up Deep Rock doctrine? Please tell us where you read or heard it (including the quote, if possible).

WORD OF THE DAY

to help become familiar with something

Get Word of the Day daily email!