Deep Rock doctrine
- A principle that establishes the rights of an investor, particularly one with a controlling stake, who provides a loan to their corporation. According to this doctrine, such a loan will be given lower priority compared to the claims of external creditors if the company is considered to lack sufficient capital
- The member of the board relied on the Deep Rock doctrine when deciding how to handle the company's debts.
- The Deep Rock doctrine was used in this case to prioritize the payment to external creditors over the repayment of the shareholder's loan.
- When the corporation faced financial challenges, the loan provided by the majority shareholder was subdued to the claims of other creditors because of the Deep Rock doctrine.