Liability within a Corporation

The video discusses the potential liabilities of shareholders, directors, and officers in a corporation. Shareholders generally have limited liability, but in closely held corporations, they may face personal liability if corporate formalities are not followed, a concept known as piercing the corporate veil. Directors are protected by the business judgment rule unless they engage in intentional or reckless conduct. Officers may also face personal liability, but corporations often indemnify them, except in cases of intentional or reckless actions.

What is the business judgment rule and how does it protect directors?

Under what circumstances can officers of a corporation be personally liable?