Can corporate officers be held liable in a law suit?

Asked over 1 year ago - Albany, NY

Can corporate officers be held personally liable in a law suit, And how do you find who the officers are? They pay workers cash and take a lot of cash in they also do not show any employees.

Attorney answers (3)

  1. Frank Anthony Natoli

    Pro

    Contributor Level 19

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    Answered . Hi,

    Yes, of course they can. Especially if the suit pertains to back payroll or other taxes owed. In general, and as my colleague noted, they are protected if the activity is within the regular course of business such as general business contracts, disputes, etc and the courts will not pierce the corp veil absent a really good reason.

    I suggest you discuss your situation in private with a lawyer to flesh out all the details. Most of us here, including myself, offer a free phone consult.

    Best regards,
    Frank
    Natoli-Lapin, LLC
    (see Disclaimer)

    The law firm of Natoli-Lapin, LLC (Home of Lantern Legal Services) offers our flat-rate legal services in the... more
  2. Michael Leo Potter

    Pro

    Contributor Level 20

    5

    Lawyers agree

    Answered . Absent clear and convincing evidence of outright Fraud in business dealings, the answer generally is NO. The Board of Directors (who are elected by the Shareholders) set policy. The officers carry it out. Liability protection is the number one reason for establishing a Corporation in the first place. Moreover, as to payments, the company cannot deduct compensation to workers without keeping documentary proof of corporate expenses. I'd recommend you sit down with a New York licensed Business Law attorney and go through your concerns and map out a pathway going forward. Good Luck!

  3. Eric Edward Rothstein

    Contributor Level 20

    1

    Lawyer agrees

    Answered . It depends of the facts.

    I am a former federal and State prosecutor and now handle criminal defense and personal injury/civil rights cases.... more

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