Hi all,
The general rule is that directors of a corporation are shielded from liability for negligent actions taken by the corporation. That's why we have corporations -- they are fictional "persons" that run around transacting business and sometimes getting into trouble, but the people running them are not held responsible. Great system, eh?
There are, however, circumstances where, in legalese, the "corporate shield" that protects directors can be "pierced." It is my personal opinion that the bicycle cooperative that I am a director of is not going to engage in any activity that would allow a person to go after my personal assets. And, I make sure that as a director I do not authorize or condone or permit activity that would subject me to that. It's all part of being a responsible director.
But, of course, this is America, and anything can happen.
Director liability is a nice thing to offer your directors and I suppose I would feel more comfortable if we at BICAS had it, but I can't really see us getting sued in a fashion that would put our directors' personal assets, slim as they are, at risk.
Your mileage may vary.
Erik Ryberg
Boson Au wrote:
Hi all,
we're in the process renewing our regular liability insurance and came across the Directors and Officers Liability Insurance. To be on the safe side, we decided to purchase that for now, but we're in the midst of deciding if we need it.
in my brief understanding; I'm not part of the committee that determines our insurance policy, it seems to be liability for the directors/officers, ie our decision making body aka collective, which is seperate from general liability. this insurance would cover "us" ie if someone wants to sue me due to my actions in the project, rather than the 'project'. I might have this wrong, I'm not sure.
so basically, the question posed by members of the collective was, "do other bike projects do this?" so hence this fragmented email.
so, if anyone else ran across this I'd love to know how you handled it and why. If you wanna answer in private, that's cool.. if not, post it?
thanks in advance.
-Boson Au Velocipede Bike Project Baltimore, MD velocipedebikeproject.org http://velocipedebikeproject.org
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