In a corporation with 2 or more shareholders is the corporation liable if 1 of the shareholders is sued?
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In a corporation with 2 or more shareholders is the corporation liable if 1 of the shareholders is sued?
Could the money be garnished from the corporation?
Asked on August 22, 2012 under Bankruptcy Law, New York
Answers:
FreeAdvice Contributing Attorney / FreeAdvice Contributing Attorney
Answered 12 years ago | Contributor
Whether the coproration under your fact patter would be liable for the acts of a shareholder depends if the wrongful act of the shareholder was done in the course of corpporate business or not and if so, did the corporation ratify the conduct? If a judgment results against the corporation, then its assets can be levied upon by the judgment creditor.
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