Domination and control definition
Domination and control means more than the ordinary control that accompanies the normal parent-subsidiary relationship. A parent corporation “may be directly involved in financing and macro-management of its subsidiaries . . . without exposing itself to a charge that each subsidiary is merely its alter ego.”21 Indeed, parent corporations are “almost always ‘active participants’” in the affairs of their subsidiaries, and in most circumstances such participation is “entirely permissible.”22 “Appropriate parental involvement includes: ‘monitoring of the subsidiary’s performance, supervision of the subsidiary’s finance and capital budget decisions, and articulation of general policies and procedures.’”23 Accordingly, the standard level of “control” accompanying a parent-subsidiary relationship is insufficient in itself to establish this prong of the veil piercing test. For “it is hornbook law that ‘the exercise of the “control” which stock ownership gives to the stockholders . . . will not create liability beyond the assets of the subsidiary.’”24 Something more is required.