Legal Question in Business Law in Virginia

Liability of Board of Directors
A corporation has very limited funds. It owns a building that has partially collapsed. There are workers on site who could be injured due to the nature of the building. The damaged building could injure people passing by on the adjacent street as well as people entering the on property because it is an attractive nuisance. There is no insurance of any kind on the property. There is no workers comp insurance for the workers. The workers have been classified as Contract Labor, but they have shown no proof of insurance to the corporation.
The corporation owns another building which is used as a school and office building so the general public is continually entering and using the building. There is no insurance on this property.
One group within the corporation, as a defense says that nothing bad has happened yet, so it never will.
If there were an accident, injury or death, could the members of the board of directors and/or the officers be held personally liable?

Asked on 9/25/08, 3:39 pm

Michael Hendrickson Law Office Michael E. Hendrickson

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Re: Liability of Board of Directors

The officers and/or board members would likely be protected in this situation from personal liability by the corporate shield.

The company, however, could be effectively bankrupted by a substantial court judgment against it.

Answered on 9/25/08, 5:21 pm

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