1. What are the benefits to commerce of having shareholders--and other entities that shield their members--protected from personal liability?
2. Would commerce be better served if personal liability would attach to those individuals for the misdeeds of their entity? Why or why not?© BrainMass Inc. brainmass.com June 4, 2020, 1:40 am ad1c9bdddf
1. As a shareholder, I certainly would not want to be held accountable for unethical or illegal actions taken on the part of company executives attempting to increase the bottom line. That said, shareholders are often also board members and well aware of the personalities and weaknesses of the CEO or CFO of the company they govern. The obvious benefit is that only those actually making the mistakes or taking the illegal actions will be brought to the ...
Opinion answer regarding benefits of shareholder protection from personal liability.