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LIABILITY SHOULD NOT HAVE BEEN FOUND ON THE PART OF THE CORPORATE PRINCIPALS WHO COMMITTED OPPRESSIVE ACTS AGAINST PLAINTIFF SHAREHOLDER.

The Second Department, reversing (modifying) Supreme Court, determined that liability should not have been found on the part of the corporate principals who committed oppressive acts against the complaining (plaintiff) shareholder:

The Supreme Court also should not have found liability on the part of [the] corporate principals of the corporate defendants, because one of the primary legitimate purposes of incorporating is to limit or eliminate the personal liability of corporate principals … , and the court did not find that they “abused the privilege of doing business in the corporate form”… . Qadan v Tehseldar, 2016 NY Slip Op 04036, 2nd Dept 5-25-16

CORPORATION LAW (LIABILITY SHOULD NOT HAVE BEEN FOUND ON THE PART OF THE CORPORATE PRINCIPALS WHO COMMITTED OPPRESSIVE ACTS AGAINST PLAINTIFF SHAREHOLDER)

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