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  1. #1
    Join Date
    Jan 2009
    Posts
    4

    Default When Can the Owner/CEO of a Corporation Be Sued

    My question involves independent contractors in the state of: New York

    An internet startup (C-Corp or S-Corp) I contracted $7500 worth of work is failing and refuses to pay.

    I learned that they owe 2 other contractors the same amount each, and that they are nearly broke. I expect the corporation to probably dissolve.

    I plan on taking them to court - along with the other contractors. Because they are likely to dissolve, I'd like to try and go after the CEO's assets. However I can't find any information about when it is possible to loop in the CEO of the corporation.

    I know there is a corporate veil that protects this sort of stuff, but I'm wondering when that veil can be broken. IE - I believe the CEO knowingly contracted out work and/or did not tell people to stop working, without cashflow or the ability to pay -- so would that make him personally liable ? Are there any specific instances that would make management/company owners liable ?

  2. #2
    Join Date
    Sep 2005
    Location
    Behind a Desk
    Posts
    98,846

    Default Re: When Can the Owner/CEO of a Corporation Be Sued

    Read about piercing the corporate veil - but the short answer is, you contracted with the corporation and you're probably not going to be able to hold the shareholder's personally liable for a debt of the corporation.

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