3 ms·
Board members can theoretically face personal liability if they fail to discharge their fiduciary duty to act in the best interest of the shareholders. And in
by cperciva 12y ago
Board members can theoretically face personal liability if they fail to discharge their fiduciary duty to act in the best interest of the shareholders.
And in some states I think claims can also be made against directors for unpaid wages -- I'm not sure how the jurisdictional issues play out for a Delaware corporation with employees elsewhere though.
- alexqgb 12y agoThat was exactly the point - the personal liability isn't to the investors, it's to the state, which tends to take a very dim view of unpaid wages. In California, I believe treble damages are standard, so missing a $50,000 payroll can cost you $200,000 in addition to court fees and legal costs. INALB I'm pretty sure this is what the OP was getting at.