What condition must be met for Georgia courts to assert jurisdiction over a parent corporation?

Study for the Georgia Bar Exam. Prepare with flashcards and multiple choice questions, each question has hints and explanations. Get ready for your exam!

For Georgia courts to assert jurisdiction over a parent corporation, it is essential that the subsidiary operates as an agent or alter ego of the parent corporation. This principle is rooted in the concept of piercing the corporate veil, which allows the courts to look beyond the legal separation between the entities when the subsidiary serves as a conduit for the parent’s activities.

If a subsidiary is deemed to be acting on behalf of the parent, involved in the parent's business operations, or the structure is such that it misleads parties regarding responsibility and liability, jurisdiction may be established. This means that the actions taken by the subsidiary can be attributed to the parent corporation, leading to the conclusion that the courts can rightfully exercise jurisdiction over the parent.

In contrast, the other conditions mentioned do not adequately establish a basis for jurisdiction. For instance, the timing of the establishment of the subsidiary (whether it was created first) or any lack of control by the parent, would not inherently justify jurisdiction by the courts. Similarly, shareholder requests for jurisdiction are not a recognized pathway for establishing court authority over corporate entities. Thus, focusing on the relationship between the parent and subsidiary—specifically viewing the subsidiary as an agent or alter ego—is critical for jurisdiction.

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