Thursday, July 9, 2009
Best Reasons to Incorporate in Nevada - Part 10
Protection from Personal Liability
The officers and directors of Nevada corporations enjoy substantial asset and liability protection. Overall, Nevada law protects directors and officers from personal liability from acts committed on behalf of the corporation or by the corporation. In Nevada in order to “pierce the corporate veil” of a corporation, which is the act of holding the directors, officers or shareholders of a corporation liable for for the debts and liabilities of the corporation, requires the presence of “fraud” or “manifest injustice.” This is the highest standard for personal indemnification available. NRS 78.138(7). In essence any individual or manager, as a director or officer in a Nevada corporation, retains minimal or no legal or financial liability exposure under the Nevada corporate veil.
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