In what cases could a non profit corporate officer be personally liable for the non personal guranteed debts of the corporation

Asked 8 months ago - Staten Island, NY

Coporate Officer is aware the corporation owes debts to an individual, acknlowedges the fact the debts are owed but closes the bank account of the corporation without authorization so the treasurer can not pay the debts. Can the corporate officer be held personally responsible for the debts since he acted outside the scope of his authority. This is a small claims suit

Attorney answers (3)

  1. Peter J Weinman

    Pro

    Contributor Level 18

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    Lawyer agrees

    Answered . Maybe. The Richmond County Bar Association, they have a referral service. http://www.thercba.com/find-a-lawyer

    I may be guessing or not licensed in your state. No atty/client relationship exists.
  2. Robb Adam Longman

    Pro

    Contributor Level 13

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    Lawyers agree

    Answered . The question does not provide enough information to answer. There are always small details that must be known when trying to answer a question like this. I would recommend you find someone that you can meet with to discuss the specifics.

    This answer is based on general legal principles only and is not intended to provide specific legal advice. This... more
  3. Oscar Javier Ornelas

    Pro

    Contributor Level 12

    1

    Lawyer agrees

    Answered . The answer to your question is unclear from your fact pattern. The key duties every nonprofit executive and director owes to their charitable organization are the duties of loyalty and care. Thus, executives and board directors are required to take decisions that impact the nonprofit using ordinary reasonable care (arm's length standard) in a manner which always benefits the nonprofit's interests. Your fact pattern does not identify the relationship of the individual creditor to the nonprofit or the circumstances surrounding the debt. The president may be obstructing a valid business relationship, or could be preventing the distribution of charitable monies to an insider on a questionable deal. Consider engaging competent local counsel to assist you with this matter.

    Any comments posted on this site are for your general information and are not a substitute for professional legal representation. Please read the disclaimer below.

    Anything contained in this response is for informational purposes only and neither the author nor The Ornelas Firm... more

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