This is the final part to our discussion aimed at helping owners and officers avoid personal responsibility for the obligations and liabilities their companies take on in the course of doing business. The first part provided an overview of the key issues related to corporate liability. The second part focused on what not to do. Here, we get to proactive techniques for guarding against personal responsibility.
This is a continuation of our discussion regarding the breakdown of liability protection afforded to owners and officers as a result of the economic crisis and business scandals in the US and around the world. It is true the American legal system is set up to shield owners/officers from corporate liabilities, but nothing draws public outcry like an executive who fills his pockets through misdeeds and then hides behind the corporate skirt.
The law has shifted in recent years towards weakening corporate liability protections. That makes it easier for plaintiffs and regulators to “pierce the corporate veil” and get to the assets of owners and officers.