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The extent of the director’s responsibility for the company entering into any transaction or giving any preference, being a transaction or preference— (a) liable to be set aside under s. 127 or ss. 238 to 240 of the Insolvency Act 1986, or (b) challengeable under s. 242 or s. 243 of that Act or under any rule of law in Scotland.
Directors also owe strict duties not to permit any conflict of interest or conflict with their duty to act in the best interests of the company. This rule is so strictly enforced that, even where the conflict of interest or conflict of duty is purely hypothetical, the directors can be forced to disgorge all personal gains arising from it.
A 2016 mapping of 41 countries’ corporate liability systems shows wide variations in approaches to liability, and that corporate liability is a dynamic area of legal innovation and evolution. [ 1 ] The term legal person refers to a business entity (often a corporation, but possibly other legal entities, as specified by law) that has both ...
Corporations exist in part to shield the personal assets of shareholders from personal liability for the debts or actions of a corporation. Unlike a general partnership or sole proprietorship in which the owner could be held responsible for all the debts of the company, a corporation traditionally limited the personal liability of the shareholders.
Tax debt forgiveness may have implications for future tax filings, and forgiven debt may be considered taxable income. Engaging with the IRS can be complex and time-consuming.
Checkbox indicating if you were personally liable for the forgiven debt (Line 5) Event code identifier or the reason for the filing (Line 6) Fair market value of the property (if applicable) (Line 7)
The corporate opportunity doctrine does not apply to all fiduciaries of a corporation; rather, it is limited to directors, officers, and controlling shareholders. [3] The doctrine applies regardless of whether the corporation is harmed by the transaction; indeed, it applies even if the corporation benefits from the transaction. [4]
You knew it was coming. Koss Corporation has sued its auditors Grant Thornton for failing to find the alleged $31 million fraud perpetrated by the company's VP of Finance over at least five years.