CORPORATIONS - LIABILITY OF DIRECTORS TO CREDITORS FOR NEGLIGENT MANAGEMENT

Authors

Abstract

There is much confusion in the cases concerning a director's liability to a creditor for negligent management of the corporation. A clearer answer might be indicated by an examination of analogous situations involving individuals instead of corporations. It adds confusion to the law to have a different rule for a corporation than for a human being, and such a result should be avoided unless separate treatment is required by something inherent in the corporation. The least that can happen if a court thinks along these lines is that it will be more likely to know what it is doing.

Recommended Citation

CORPORATIONS - LIABILITY OF DIRECTORS TO CREDITORS FOR NEGLIGENT MANAGEMENT, 34 Mich. L. Rev. 521 (1936).
Available at: https://repository.law.umich.edu/mlr/vol34/iss4/5