Legal Question in Business Law in Tennessee

Re: Is general manager liable

The geberal manager's liability for the debts of the business would depend upon the type of business entity involved. If the business is a corporation or limited liability company, the general manager has no personal liability for the debts of those entities. However, if the business is a partnership or solo enterprise in which the business manager is a partner or closely involved as a de facto partner in the solo enterprise, then it is much more likely that the general manager would be liable for the debts of the business.

Re: Is general manager liable

It depends on a number of factors such as, how the business is organized (partnership, sole prop. corporation, limited liability company) and how the general manager conducts himself.

Generally speaking if the general manager is not a partner of a partnership and he/she does not otherwise hold themselves out as an owner or responsible for the debts of the business, then the general manager is not liable for the business' debts.

Another piece of good news for the general manager in your scenario is the fact that the business will most likely file bankruptcy. If it does, the creditors will be focused on what they can get in the bankruptcy plan and not be looking too much at collateral issues.

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