) Should executives and directors be sent to jail for the acts of their corporation’s employees?

) Should executives and directors be sent to jail for the acts of their corporation’s employees?

Expert Solution

The company is generally run by the board of directors in line with the directions set up by the promoters and the owners of the company. The board of directors in turn set the direction for the corporation's employees to achieve a pre determined goal.

If the act of the employees is such that it brings harm and losses to the company or the third party then the employee shall be personally liable for that act. But if such act was conducted with the consent of the directors or the top executives of the company then apart from that employee, the directors and the executives shall also be liable for that.

The only rescue in such a situation for a director or an executive is to show that the act was conducted without his consent or that he withdrew the consent before the act was done. If the transaction was scheduled in such a way to deceive the third party or the company with the consent of the director, then the law making authority has the full right to lift the corporate veil and punish the director

Thus, in my views, the directors and the executive are held liable for jail if they too are involved in criminal liability or the act was done with their consent.

ekkarill92 answered 1 year ago

FIND, CITE AND SUMMARIZE AN ARTICLE WHERE CORPORATE DIRECTORS PAID FOR THEIR BAD ACTIONS WITH JAIL...

FIND, CITE AND SUMMARIZE AN ARTICLE WHERE CORPORATE DIRECTORS PAID FOR THEIR BAD ACTIONS WITH JAIL TIME, FINES OR BOTH

Question 5. What are the challenges in determining the compensation arrangements of directors and executives? In...

Question 5. What are the challenges in determining the compensation arrangements of directors and executives? In your discussion, evaluate whether regulatory action is necessary to fix “excessive” compensation or whether a better designed compensation contract do the job?

so many directors are underpaying employees, is this a breach of directors fiduciary duties? What will...

so many directors are underpaying employees, is this a breach of directors fiduciary duties? What will be the consequences for these directors and will they have to pay back what is owed

What is the implications of directors or executives having knowledge in Information technology on (i) board...

What is the implications of directors or executives having knowledge in Information technology on (i) board (ii) existing or potential stakeholder (iii) society

How is a corporation’s board of directors chosen? Explain the role the board plays in a...

How is a corporation’s board of directors chosen? Explain the role the board plays in a corporation’s management. What steps are involved in starting a general corporation?

Perform 3 random acts of kindness (altruism) – these acts should ideally be unplanned (random) and...

Perform 3 random acts of kindness (altruism) – these acts should ideally be unplanned (random) and can vary from small to large depending on the situation. Describe the 3 acts you performed – what did you do, what were the reactions of the recipient if any, and share your thoughts and reactions to your actions. Describe a time where you were the victim of prejudice or discrimination (can be based on your age, race, ethnicity, sexual orientation, gender, religious affiliation,...

The executives of a care free and insurance incorporated feel that a majority of our employees...

The executives of a care free and insurance incorporated feel that a majority of our employees perceive a huertista batori management's thou a care free a random sample of 200 carefree employees is selected to test this hypothesis and as he were a point 05 level of significance 80 employees rate the management as participatory the appropriate decision is

Discuss issues related to paying employees serving in the military and paying executives.

According to a survey by Accountemps, 48% of executives believe that employees are most productive on...

According to a survey by Accountemps, 48% of executives believe that employees are most productive on Tuesdays. Suppose 230 executives are randomly surveyed. Appendix A Statistical Tables a. What is the probability that fewer than 101 of the executives believe employees are most productive on Tuesdays? b. What is the probability that more than 115 of the executives believe employees are most productive on Tuesdays? c. What is the probability that more than 96 of the executives believe employees are...

2. Executives and directors often suffer reputational damage from their association with a failed company. What...

2. Executives and directors often suffer reputational damage from their association with a failed company. What is the standard by which their “culpability” should be judged? When are these individuals fit to hold future directorships, and when are they “too tainted” by their experience?

Question