Governance keeps structures respected. Opponents attack commingling, informal contracting, undercapitalization, and alter-ego behavior.
Separateness rules
- Separate accounts
- Correct contract signatures
- Bookkeeping matches reality
- No personal use of entity funds without documentation
- Clear distribution/loan policies
Annual review
- Ownership map accurate?
- Accounts/signatories aligned?
- Insurance aligned?
- New exposures?
- Recordkeeping hygiene?
Incident protocol
Do: Call litigation counsel, preserve records, follow governance rules.
Don’t: Make panicked transfers or “hide assets.”