The equitable owners of a corporation are liable for the debts of the corporation when they treat the assets of the corporation as their own, when they hold themselves as being personally liable for the debts of the corporation, or when they provide inadequate capitalization and actively participate in the affairs of the corporation.
In this case, there was no doubt that Cavaney had some ownership of the corporation. He along with two others applied for permission to issue themselves a share each of the corporation, but were turned down. The defendants showed evidence that Cavaney was the attorney of Seminole and based on Cavaney’s answers to several interrogatories that he also at times served as Seminole’s director, treasurer and secretary on a temporary basis. There was evidence that Cavaney’s office was used by Seminole to receive mail and to maintain records and that Cavaney himself actively participated in Seminole’s business.
Although the plaintiffs were able to show Cavaney’s