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All Jurisprudence based

0 tracked cards Commercial and Taxation Laws

A debtor corporation releases a subscriber's unpaid balance without valuable consideration, to creditors' prejudice. A creditor proves the release and seeks the amount under the trust fund doctrine. The subscriber relies solely on the release to claim immunity. Under Halley as explained in Enano-Bote, which is sound?

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Every gratuitous release conclusively defeats creditors. The proved prejudicial release is a recognized ground for applying the doctrine; the release is not an automatic defense. The creditor must accept any release even if prejudicial. The shareholder thereby becomes immune from every other law.

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