[Lvlug] Getting organized...
Wed, 29 Nov 2000 20:27:22 EST
In a message dated Wed, 29 Nov 2000 8:04:18 PM Eastern Standard Time, Tom Walsh <email@example.com> writes:
<<Yes, the principles AND the members of a non-incorporated entity are
automatically subject to liability for any action taken by an individual
member of that entity, whether the individual was charged as an agent or
not (an agent is a person who has been given a specific authority to
represent the entity in some context).
Under a corporation, if an individual steps outside of their authority,
or, creates an unknowing liability for the corporation, then the
individual is solely responsible. Just being incorporated doesn't
protect the principles from liability entirely, it is relatively easy to
"pierce the corporate veil" today, but, misconduct on the part of the
principle(s) has to be proven first. The other members of the
corporation are also insulated from liability, unless misconduct is
shown on their part as well.
With a group our size I had not envisioned liability a problem, however it seems that it is... For this reason we will be placing a disclaimer on our web site concerning our group and it's meetings, etc. It is unfortunate it has come to this.