nerve center test
nerve-center test. A method courts sometimes use to determine the location of a company’s principal place of business, by examining where the company’s central decision-making authority lies. • Factors include the locations where the corporate officers, directors, and (sometimes) shareholders reside, and where they direct and control the corporation’s activities. [Cases: Corporations 52; Federal Courts 300. C.J.S. Corporations §§ 107–109, 886.]
