8 ms·
This is inaccurate. In no way did people have to turn to their personal finances to help companies that their company invested in. That is like your banker, see
by jjb123 4y ago
This is inaccurate. In no way did people have to turn to their personal finances to help companies that their company invested in. That is like your banker, seeing your dire situation caused by a third party to you, and writing you a personal check… That is actually what happened across multiple situations I witnessed. Not saying these folks are saints but pretty unexpected to see.
- bzax 4y agoBoard members have personal liability for payroll in California.
- tomato_123 4y agoThis is incorrect. Payroll pierces the corporate veil.
- jacquesm 4y agoNot necessarily for investors, unless it can be shown that they have incurred liability beyond their investment.
- snotrockets 4y agoMany investors like to have a board seat, which makes them an officer of the company
- jacquesm 4y agoTrue, but getting a board to be liable has a very high standard of proof. If not then there wouldn't be any boards, the compensation would not outweigh the risks.
- snotrockets 4y agoGiven the choice between bridging some cash (knowing that the full faith and credit of the US government backs the funds being bridged), or having the possibility of getting dragged into proceedings in the future, which at best would increase my liability insurance premiums, I'd pick the former.