Can the corporation indemnify or provide protection for directors?
The short answer is yes. Most state corporate laws allow a corporation to indemnify and hold harmless a director. This means that if the director or officer is sued while acting in their corporate capacity as a director, the corporation will pay for legal costs to defend the lawsuit and will pay for any judgment » Continue…
What is the "business judgment rule"?
Can a director be liable for making bad decisions? The business judgment rule is a legal concept relied upon by courts who refuse to review the actions of a corporation’s board of directors in managing the affairs of the corporation unless there is some allegation of misconduct that (1) violates (a) the directors’ duty of » Continue…
Do you really want to be an officer or director?
Sometimes people are asked by a friend or relative to be an officer or director of a corporation. This may seem like an honor and a good opportunity, which it might be. However, you should be aware that officers and directors could be liable for certain obligations of the corporation. Although the general rule is » Continue…
Who are the main people involved in a small corporation?
In corporate law, there are several different categories of people involved with the corporation. In small corporations, it is common for the same people to function in several positions or capacities. They just wear different hats, so to speak. In a one person corporation, the owner may function in all capacities. The main capacities or » Continue…
