Judgement Award to Corp. Vs. Personal Liability
My corporation that sold all its assetts in 2006 has been awarded a judgement,recently, in the arbitration. My corporation was the defendent and the plaintiff was buyer's corporation. There is no assetts in my corporation, its not doing any business for past 2 years. Can this award be transfered on me personally? The corporations charter is still GOOD. I was 100% stock holder of the corporation. The plaintiff sued to my corporation and never sued me personally; hence the arbitration judge also awarded the judgement against my corporation and did not award against me personally. I can I avoid my self from collection, personally. How can I protect my assets?
Asked on 12/08/08, 10:20 pm
1 Answer from Attorneys
Robert Sher
Wagshal and Sher
Re: Judgement Award to Corp. Vs. Personal Liability
You pretty much answered your own question. Since the judgment is against your corporation, your personal assets are not at risk. A corporation is a distinct legal entity, and the shareholders' personal assets are not at risk for corporate activities.
Congratulations for having the foresight to incorporate.
Answered on 12/09/08, 4:04 pm
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