California Business, Corporate, Securities & Startup Company Lawyer

David P. Horne, Attorney at Law

CONTACT US
  • Home
  • About
  • Practice Areas
  • Articles
  • Reviews

Protecting Officers and Directors in Your Formation Documents

October 8, 2015 david.horne

Officers and Directors have greater liability than Shareholders and you should remember to address this in your corporate formation documents.

There are very important provisions relating to limitation of liability of officers and directors of the company because officers and directors of the company face greater liabilities than a shareholder or a passive director in the company. And there are specific provisions that need to be in the formation documents including the articles of incorporation, the certificate of incorporation, in order to limit liability and to provide for so-called indemnification of officers and directors in the event they are sued in their capacity.

If an investor or some other party dealing with the company is looking for someone to make them whole for some actual or perceived loss, they might sue not only the company but also the officers and directors of the company personally.

It’s very important to have specific provisions that provide additional protection to officers and directors within the formation of a company. In a lot of cases, that language is simply missing, or it’s inadequate.

Filed Under: Uncategorized

“David Horne has been an immense help in the start of my business. He has helped me network with contacts needed to develop the company by providing valuable introductions and has been extremely helpful with legal instructions. I’m very lucky to have found David. If you’re looking for someone to help you with your startup, look no further. David’s the best!”
Startup Founder
San Francisco, CA

Connect With Us

  

Contact Us

We want to hear from you. If your matter is time-sensitive, please email us at info@calcorp.com. Otherwise, you may complete the form below, and we will respond to you in the near future.
  • This field is for validation purposes and should be left unchanged.

San Francisco Bay Area • Lake Tahoe • Northern California • Southern California

(415) 401-7100

info@calcorp.com

 

The content of this site is intended for general informational purposes only and does not constitute specific legal advice. Your access to this site, use of the contact form on this site, transmission of email to an address on this site, and telephone or fax inquiry does not create an attorney-client relationship between us. This site is not intended to be a solicitation but may be deemed a COMMUNICATION or ADVERTISEMENT in certain jurisdictions. The reviews, testimonials and endorsements on this website do not constitute a guarantee, warranty, or prediction regarding the outcome of your legal matter.

Legal Notices Privacy Policy

©2007 - 2023 David P. Horne. All Rights Reserved. All trademarks are property of their respective owners.