This will be a multi-post blog entry. This sixth post discusses how a business deadlock can impose indirect personal liability on business owners for certain obligations that may be neglected because the business is at crossroads between multiple owners.
Post 6 – Personal Liability Pursuant To a Business Deadlock
Even though powers and duties of running the business may be appropriately delegated, business deadlocks may still occur. One or more owners may disagree with the other on certain decisions such as merging (sale or acquisition); consolidating with or acquiring a competitor; going public; incurring significant capital expenditures; pursuing business expansion endeavors; or other decisions, strategic or operational.… Read the rest