Eastern Realty Corp was organized to purchase, renovate, and sell office buildings. The officers of the corporation authorized the purchase of two buildings, which resulted in a substantial loss to the corporation. Can the stockholders legally hold the officers personally liable for the loss?
No. Officers, like directors, are liable only for intentional acts of negligence that harm the corporation. There is nothing here to indicate that they intentionally tried to harm the corporation when they authorized the purchase of the two buildings.
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