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can the board members of a "c" corporation be held liable for the corporations debt if they are not owners?
Mansfield, TX
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Posted 10 months ago in Corporate / Incorporation
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i was ask by the owner to serve on the board. I only work for the company in a management position and have no duties involving expenses.
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Answers (1)
Lu Ann Trevino
This attorney is licensed in Texas.
Posted 10 months ago.
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These comments are made for educational purposes only and do not constitute legal advice. No attorney-client relationship exists between us.
Board members can be liable for the debts of the company IF all the corporate formalities are not observed. The members must exercise diligence in making sure the minutes of meetings are kept and filed with the secretary of state, that the actions of the company executives are proper and approved by the board when appropriate. Board members often have to remind the "owner" that the company assets are just that rather than personal assets. The position should not be taken lightly.
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