MASSACHUSETTS EMPLOYMENT LAWYER • MA BUSINESS LAWYER • BUSINESS LITIGATION MASSACHUSETTS
 

What Protections Are Available for Officers, Directors, and Shareholders in a Closely Held Corporation?

Insurance for Directors and Officers and indemnification of directors and officers for all but the most serious and willful errors is available.

  • Incorporation documents can spell out the extent and conditions for the company to pay back officers and/or directors for any losses to them personally for their action on behalf of the corporation. These conditions must be properly written into the articles of organization and/or by-laws. The “new” incorporation law effective July 1, 2004 has language spelling out the extent of “permissible indemnification,” of directors for their actions representing corporations. Under Section 8.52, a corporation must indemnify any director who is “wholly successful” in defending litigation. This very limited mandatory protection, among others, is good reasons for a corporate “legal audit”, particularly if you have not brought your previously set up corporation in line with the new law.

 

Follow Us

CONTACT US

Lawrence B. Morse & Associates is located north of Boston in Danvers Massachusetts and specializes in employment and business law and business litigation for Massachusetts businesses and employees.

Feel free to contact us and we'll be in touch shortly.

Address: 19 Cherry Street, Danvers, MA 01923

Telephone: 978.777.1176

Please submit the form below:





Your Name (required)

Your Email (required)

Subject

Your Message

Copyright © 2010- 2016
Lawrence B. Morse & Associates, Attorneys At Law, LLC. All Rights Reserved.

Lawrence B. Morse & Associates is located on the North Shore in Danvers, Massachusetts and specializes in business law,
employment law and litagation for business owners and employees in Essex, Middlesex, and Suffolk counties.

The materials in this advisory should not be relied upon in making decisions about your personal situation.
Competent professional advice concerning your individual situation is essential.