ABSTRACT
This chapter explores American Case Law and the Argentine Law regarding this matter and provides new approaches and principles to the less developed European Continental Civil Law on a comparative law basis. In bankruptcy, the American courts act as courts of equity with the overriding objective of achieving equality of distribution and fairness for creditors. A creditor with an unsatisfied judgment against an insolvent subsidiary was successful in a suit on the judgment against the parent. In 1949, Rounds & Porter Lumber Co v Burns, an action brought by a creditor, the Arkansas Supreme Court also imposed liability on the parent for lumber sold to the subsidiary. Liability was based on considerations virtually indistinguishable from the bankruptcy doctrine of fraudulent conveyance. In 1967, the court in In re Long v Mc.Glon denied a motion to dismiss a complaint by a Trustee in Bankruptcy of a corporation to hold its two shareholders, who had been officers and directors, personally liable.
