Can a peson injured on uninsured property sue a stockholder or all stock holders
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Can a peson injured on uninsured property sue a stockholder or all stock holders
We have a property owned by
shareholders that is uninsured.if a
person gets injured on the property can
they sue one or more stockholders or
just the corporation.
Asked on March 8, 2017 under Personal Injury, New York
Answers:
SJZ, Member, New York Bar / FreeAdvice Contributing Attorney
Answered 7 years ago | Contributor
He can only sue the corporation assuming that you are keeping corporate assets & income separate from the shareholders (e.g. you don't have corporate money being used by shareholders for their personal expenses)--if you don't keep the corporation separate & distinct from shareholders, then a creditor or plaintiff could "pierce the corporate veil" and sue shareholders personally. But if you do respect the fact that the corporation is a separate legal "person," then only the corporation, not the shareholders, would be liable.
(Note: if a shareholder personally does something wrong that injures a person, even if he is doing it for the corporation, he can be sued for his personal act. Example: John Doe is a shareholder who also helps with maintenance. He leaves a ladder leaning precariously and it falls and hits Jane Smith. Jane can sue John for his personal negligence.)
SJZ, Member, New York Bar / FreeAdvice Contributing Attorney
Answered 7 years ago | Contributor
He can only sue the corporation assuming that you are keeping corporate assets & income separate from the shareholders (e.g. you don't have corporate money being used by shareholders for their personal expenses)--if you don't keep the corporation separate & distinct from shareholders, then a creditor or plaintiff could "pierce the corporate veil" and sue shareholders personally. But if you do respect the fact that the corporation is a separate legal "person," then only the corporation, not the shareholders, would be liable.
(Note: if a shareholder personally does something wrong that injures a person, even if he is doing it for the corporation, he can be sued for his personal act. Example: John Doe is a shareholder who also helps with maintenance. He leaves a ladder leaning precariously and it falls and hits Jane Smith. Jane can sue John for his personal negligence.)
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