What Qualifies as Corporate Negligence? Part 1

Corporate negligence can often be difficult to establish. For a corporation to be declared negligent, it must be proven that a corporation or one of its employees did undue harm to a third party by breaching their responsibility.

Often the shareholders of a corporation will bring suit against a member of the board of directors who does not observe his or her duty of care. In such a situation the corporation itself is held in vicarious liability for the acts of the singular entity who committed corporate negligence. The board of directors of a company has a duty of care to its shareholders to not devalue a company through acts of negligence. Actions, such as not having an attorney review contracts or not seeking expert advice in situations that directly affect company shares, can be considered negligent. That’s why it is very important for corporations to seek expert legal advice in any situation that could result in corporate negligence.

ForensisGroup articles provide information about legal matters related to the expert witness industry. Legal information is not the same as legal advice. While ForensisGroup goes to great lengths to ensure that the information it offers is useful and accurate, we always recommend that you consult a professional before acting on any legal information read on the Internet.

About Karen Olson

Information Professional with twenty years experience in legal, public record, and business research. Fifteen years law firm experience.

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