Corporation Law NY

[PrinceCharming]

What is the name of your state (only U.S. law)? NY

Would it be possible to hold an officer personally liable for financial damages even though they are protected by corporation law.

For Example: if the officer stole a million dollars and becuase of this none of the employees got paid. The employees want to sue the officer directly, since he has money.

Another example: The corporation was based on fraud or person under 18 years of age signed off on the original corporation papers.

Please provide support to your response. Thank You

 

[You Are Guilty]

Google "piercing the corporate veil".

 

[PrinceCharming]

Thank You.

I found this.

Under sections 198-a and 198-c of the Labor Law, a
corporate officer is personally liable for the corporation's
obligations to its employees. While section 198-a of the
Labor Law on its face only imposes criminal liability on
the corporate officer, it is now [***4] well established
that a private civil action may be brought against an
officer for unpaid wages or fringe benefits. ( Excavators
Union Local 731 Welfare Fund v Zurmuhlen, 68 AD2d
816; Sasso v Millbrook Enterprises, 108 Misc 2d 562;
Johnson v Clay Partition Co., 93 Misc 2d 414, affd 65
AD2d 737; Goldstein v Mangano, 99 Misc 2d 523.)