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 LATEST NEWS |
October 13.2008
Treasury Hires Investment Adviser Under the Emergency Economic Stabilization Act |
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October 13.2008
Plenary Remarks by Assistant Secretary for International Affairs Clay Lowery at the Annual International Monetary Fund and World Bank Meetings |
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October 13.2008
The global financial crisis has yet to peak, and individual governments must now take appropriate measures to deal with its effects, Russia's finance minster said. |
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October 12.2008
Recent U.S. Actions to Halt Iran�s Procurement Practices for Attempted Acquisition of WMD-Related Items |
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October 12.2008
Treasury Designates FARC International Commission Members |
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October 12.2008
Statement by Secretary Henry M. Paulson, Jr. at the Development Committee Meeting |
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October 12.2008
One-in-Five Speak Spanish In Four States New Census Bureau Data Show How America Lives |
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October 12.2008
Una de Cada Cinco Personas Habla Español en Cuatro Estados Nuevos Datos de la Oficina del Censo Muestran Cómo Viven los Estados Unidos |
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October 12.2008
Capital Expenditures Rise 14 Percent to Record High in 2006 |
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October 12.2008
Nation’s Housing Stock Reaches 128 Million |
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October 12.2008
Federal Spending Increased 4.4 Percent in 2007 |
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October 12.2008
Investment Banks Struggle to Adapt |
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TERMS / Are there circumstances in which the directors or officers of a company can be made personally liable in respect of its insolvency?Ordinarily, the mere fact of an insolvency should not result in liability to the directors, officers or managers of an insolvent company since business failures occur for a variety of reasons and are a fact of life in a free market economy. However, under tax and wage payment statutes, the failure to pay certain types of taxes or employees’ wages may result in personal liability for officers or managers responsible for making such payments. In addition, directors, officers and managers may be held personally liable if the actions of such persons either caused or worsened the debtor’s insolvency or were otherwise inappropriate given the insolvency or probable insolvency of the debtor at the time the actions were taken. To be personally liable in such cases, however, the actions taken by the directors, officers or managers of a debtor must generally be found to constitute or be the result of a breach of certain state law duties owed to the company such as the duties of due care, loyalty and good faith. Directors, officers and managers are not held personally liable for mere errors in business judgment or if the business strategy they pursued was unsuccessful as long as they acted on an informed basis, in good faith and in the honest belief that the actions taken were in the best interests of the company.
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