Thursday, September 17, 2020 4:07:43 PM
Of course, if an officer does something illegal or grossly negligent, he can be held personally liable, even if his actions are done under the umbrella of the corporation. Officers who are complicit in misleading the public, lie to the government, bilk investors out of their money, steal corporate resources, embezzle, sexually harass others or do anything else that is illegal may personally face criminal or civil penalties and jail time.
Fiduciary Duties
Officers of the board of directors have a legal duty to act in the best interest of shareholders and maximize profits. While an officer of the board enjoys limited liability for actions taken on behalf of the corporation, if he breaches his fiduciary duties and engages in self-dealing or otherwise puts his own interest or the interests of a related party over his duty to the corporation, the officer may be held personally liable.
Piercing the Corporate Veil
A court can disregard a corporation's limited liability protections --called "piercing the corporate veil" -- if the court finds that the company is just a shell that allows the people involved to take advantage of creditors. If officers, directors, shareholders or employees treat the corporation as a piggy bank, mingling personal and business funds, and do not comply with the formalities required of a corporation, the court can hold the people involved personally liable.
Good Standing
A corporation is incorporated in the state where it files its articles of incorporation. Some states require corporations to file an annual report or pay an annual fee to keep the corporation's registration in good standing. If these obligations are not met in a timely fashion, the state may suspend the corporation's authority to do business in the state. If the corporation allows its state registration to lapse, the people involved risk personal liability exposure if the corporation is sued.
Recent CELZ News
- Creative Medical Technology Holdings Provides Corporate Update • Business Wire • 03/27/2024 01:00:00 PM
- Creative Medical Technology Holdings Inc. Announces FDA Authorization for Groundbreaking Type 1 Diabetes Prevention Therapy Under Expanded Access • Business Wire • 03/07/2024 02:15:00 PM
- Biotech Finds Mid-Week Success Following FDA Announcement • AllPennyStocks.com • 03/06/2024 09:10:00 PM
- Creative Medical Technology Holdings, Inc. Receives FDA Orphan Drug Designation for CELZ-101 in Key Transplantation Therapy • Business Wire • 03/06/2024 12:00:00 PM
- Form 8-K - Current report • Edgar (US Regulatory) • 12/20/2023 09:05:37 PM
- Creative Medical Technology Holdings Provides Corporate Update • PR Newswire (US) • 11/15/2023 01:00:00 PM
- Form DEF 14A - Other definitive proxy statements • Edgar (US Regulatory) • 11/03/2023 08:05:12 PM
- Creative Medical Technology Holdings Announces IRB Approval for FDA Cleared Phase 1/2 Clinical Trial of StemSpine® using AlloStem™ ("CELZ-201-DDT") Novel Cell Therapy to Treat Chronic Lower Back Pain • PR Newswire (US) • 10/10/2023 12:00:00 PM
- Creative Medical Technology Holdings Receives FDA Clearance to Initiate a Phase 1/2 Clinical Trial of StemSpine® using AlloStem™ (CELZ-201-DDT) for the Treatment of Chronic Lower Back Pain • PR Newswire (US) • 09/19/2023 12:00:00 PM
- Form 10-Q - Quarterly report [Sections 13 or 15(d)] • Edgar (US Regulatory) • 08/11/2023 08:45:38 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 06/29/2023 09:37:18 PM
- Form 8-K - Current report • Edgar (US Regulatory) • 06/28/2023 01:00:18 PM
- Creative Medical Technology Holdings Regains Compliance With Nasdaq Listing Requirements • PR Newswire (US) • 06/28/2023 12:00:00 PM
- Creative Medical Technology Announces $2 Million Share Repurchase Program • PR Newswire (US) • 06/12/2023 12:01:00 PM
- Creative Medical Technology Holdings Provides Corporate Update • PR Newswire (US) • 06/12/2023 12:00:00 PM
- Creative Medical Technology Holdings Announces Reverse Stock Split • PR Newswire (US) • 06/09/2023 04:30:00 PM
- Creative Medical Technology Holdings Announces Successful Completion of the First Phase of its Program with Greenstone Biosciences, Inc. to Develop Next Generation iPSC Pipeline for ImmCelz® Immunotherapy Platform • PR Newswire (US) • 05/31/2023 12:00:00 PM
- Creative Medical Technology Holdings Announces Next Milestone Achievements in ImmCelz® Platform Development • PR Newswire (US) • 05/22/2023 12:30:00 PM
- Creative Medical Technology Holdings Announces Positive Top-Line Study Results for Chronic Lower Back Pain Utilizing its StemSpine® Procedure Using AlloStem™ Allogenic Cell Line • PR Newswire (US) • 05/18/2023 12:00:00 PM
NanoViricides Reports that the Phase I NV-387 Clinical Trial is Completed Successfully and Data Lock is Expected Soon • NNVC • May 2, 2024 10:07 AM
ILUS Files Form 10-K and Provides Shareholder Update • ILUS • May 2, 2024 8:52 AM
Avant Technologies Names New CEO Following Acquisition of Healthcare Technology and Data Integration Firm • AVAI • May 2, 2024 8:00 AM
Bantec Engaged in a Letter of Intent to Acquire a Small New Jersey Based Manufacturing Company • BANT • May 1, 2024 10:00 AM
Cannabix Technologies to Deliver Breath Logix Alcohol Screening Device to Australia • BLO • Apr 30, 2024 8:53 AM
Hydromer, Inc. Reports Preliminary Unaudited Financial Results for First Quarter 2024 • HYDI • Apr 29, 2024 9:10 AM