Discovery
Discovery or Discovery in a Lawsuit or Document Discovery
- Document Discovery
refers to the process during a lawsuit through which a litigant's attorney
obtains documents such as your Corporate Minute Book
to use as evidence against
you. Some methods of discovery by plaintiffs (including Depositions, Interrogatories and
Requests for Admissions) can be used to discover evidence previously unknown to the
plaintiff and to impeach testimony you might give during the trial (by mentioning any
conflicting answers you had previously provided during discovery). Depositions are meetings
during which attorneys question witnesses under oath while a transcript is being kept.
Interrogatories are written questions to be answered under oath. Requests for Admissions
are written statements of fact to be admitted or denied under oath.
From a corporate records point of view, forms of discovery called the Request for Production of Documents (written requests for you to give photocopies of specified documents such as all corporate minutes for certain specified calendar years and to do so within a certain rather short timeframe) can sometimes prove to be the most damaging. Failure to comply in a timely manner could result in monetary sanctions and in an inability to present the requested documents later as evidence in your favor.
Suppose you have no corporate minutes or incomplete corporate minutes during those specified calendar years. The plaintiff's attorneys will use your incomplete or missing corporate minutes to prove that the corporation is not truly a separate legal entity from your corporation's officers and shareholders. Your deficient corporate minutes demonstrate that your officers and shareholders repeatedly acted without the required authorization of a corporate resolution. Like commingling corporate and personal money, actions without required corporate resolutions evidence a disregard for corporate formalities that helps attorneys to 'pierce the corporate veil' (i.e., overcome the corporate shield against personal liability).
Disclaimer: The foregoing is intended to provide general information and may not be suitable in specific instances. The glossary information is not intended to be exhaustive, but rather to illustrate typical considerations. The material is provided with the understanding that it is not legal, accounting, tax or any other professional advice.
Copyright © 2003-2010 LawVantage.com, LLC. All rights reserved.
Important LawVantage.com, LLC and its website, CorporateBoardMinutes.com, do not render any legal, accounting or other consulting advice.
For legal advice, you should always consult with a qualified attorney-at-law.
Website development by
Vine Design.
From a corporate records point of view, forms of discovery called the Request for Production of Documents (written requests for you to give photocopies of specified documents such as all corporate minutes for certain specified calendar years and to do so within a certain rather short timeframe) can sometimes prove to be the most damaging. Failure to comply in a timely manner could result in monetary sanctions and in an inability to present the requested documents later as evidence in your favor.
Suppose you have no corporate minutes or incomplete corporate minutes during those specified calendar years. The plaintiff's attorneys will use your incomplete or missing corporate minutes to prove that the corporation is not truly a separate legal entity from your corporation's officers and shareholders. Your deficient corporate minutes demonstrate that your officers and shareholders repeatedly acted without the required authorization of a corporate resolution. Like commingling corporate and personal money, actions without required corporate resolutions evidence a disregard for corporate formalities that helps attorneys to 'pierce the corporate veil' (i.e., overcome the corporate shield against personal liability).
Disclaimer: The foregoing is intended to provide general information and may not be suitable in specific instances. The glossary information is not intended to be exhaustive, but rather to illustrate typical considerations. The material is provided with the understanding that it is not legal, accounting, tax or any other professional advice.
Copyright © 2003-2010 LawVantage.com, LLC. All rights reserved.
Important LawVantage.com, LLC and its website, CorporateBoardMinutes.com, do not render any legal, accounting or other consulting advice.
For legal advice, you should always consult with a qualified attorney-at-law.
Website development by
Vine Design.