Interesting end around. I wonder how this could play out.Shugerman’s approach stems from one important legal concept: Incorporation is a privilege afforded by the state, but to maintain corporate status, one must conduct business legally.
State attorneys general have the power to bring actions against corporations, something known as a “Quo Warranto” proceeding, to determine whether the corporations are a conduit for illegal activity. This is known as a corporation acting “ultra vires” or beyond its legal authority. In this case, the proceeding would determine whether Trump’s corporate entities are being used as a conduit for illegal emoluments to Trump.
Importantly, the case would involve a public official (a state attorney general) suing a private entity (the Trump Organization). This means standing would be on much firmer ground.