Liability of Company Officers, Directors and Equity Owners

Liability under the law is an area of essential knowledge for anyone with managerial capacity. Company officers, directors and owners ordinarily face countless situations capable of generating compensatory obligations and fines. The consequences that may result from breaches of the law and the liability arising therefrom can be extremely serious. This note describes the legal concept of liability and its general elements, its different classes, the duties and liability specific to de facto and de jure managers, derivative suits against executive officers and directors, the most common crimes committed in the exercise of managerial activity, and the liability of business owners.