{"id":531,"date":"2020-05-01T16:55:06","date_gmt":"2020-05-01T20:55:06","guid":{"rendered":"http:\/\/blogs.duanemorris.com\/coronaviruscovid19\/?p=531"},"modified":"2020-05-01T16:55:06","modified_gmt":"2020-05-01T20:55:06","slug":"directors-and-officers-who-fail-at-company-oversight-can-be-held-personally-liable","status":"publish","type":"post","link":"https:\/\/blogs.duanemorris.com\/coronaviruscovid19\/2020\/05\/01\/directors-and-officers-who-fail-at-company-oversight-can-be-held-personally-liable\/","title":{"rendered":"Directors and Officers Who Fail at Company Oversight Can Be Held Personally Liable"},"content":{"rendered":"<p>Across the United States, the Coronavirus has caused widespread devastation, marking its arrival with debilitating symptoms and tens of thousands of deaths.\u00a0 The virus also is responsible for significant economic destruction, rendering 30 million Americans jobless requiring $660 billion in payroll loans, and necessitating a $2.2 trillion in stimulus package.\u00a0 History likely will reveal that poorly run companies are repeat victims of the financial hardships precipitated by COVID-19.\u00a0 Even without a pandemic, a company likely will fail (or suffer significant harm) if its directors and officers do not adequately oversee the company\u2019s management.\u00a0 But, there is another reason to avoid oversight failures.\u00a0 As the Delaware Court of Chancery\u2019s April 27, 2020 decision in\u00a0<em><a href=\"http:\/\/blogs.duanemorris.com\/delawarebusinesslaw\/wp-content\/uploads\/sites\/16\/2020\/05\/73125047_kandi-final.pdf\">Hughes et al. v. Xiaming Hu et al.<\/a><\/em>\u00a0reinforces, directors and officers who neglect their oversight responsibilities may be personally liable for resulting harm to the company and its stockholders.<\/p>\n<p>To read the full text of this post by Duane Morris partner <a href=\"https:\/\/www.duanemorris.com\/attorneys\/oderahnwaeze.html\">Oderah C. Nwaeze<\/a>, please <a href=\"https:\/\/blogs.duanemorris.com\/delawarebusinesslaw\/2020\/05\/01\/better-oversight-than-hindsight\/\" target=\"_blank\" rel=\"noopener noreferrer\">visit the <em>Duane Morris Delaware Business Law Blog<\/em><\/a>.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Across the United States, the Coronavirus has caused widespread devastation, marking its arrival with debilitating symptoms and tens of thousands of deaths.\u00a0 The virus also is responsible for significant economic destruction, rendering 30 million Americans jobless requiring $660 billion in payroll loans, and necessitating a $2.2 trillion in stimulus package.\u00a0 History likely will reveal that &hellip; <\/p>\n<p class=\"link-more\"><a href=\"https:\/\/blogs.duanemorris.com\/coronaviruscovid19\/2020\/05\/01\/directors-and-officers-who-fail-at-company-oversight-can-be-held-personally-liable\/\" class=\"more-link\">Continue reading<span class=\"screen-reader-text\"> &#8220;Directors and Officers Who Fail at Company Oversight Can Be Held Personally Liable&#8221;<\/span><\/a><\/p>\n","protected":false},"author":6,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[2],"tags":[720,163,721],"ppma_author":[1043],"class_list":["post-531","post","type-post","status-publish","format-standard","hentry","category-general","tag-corporate-oversight","tag-delaware","tag-personal-iability"],"authors":[{"term_id":1043,"user_id":6,"is_guest":0,"slug":"duanemorris3","display_name":"Duane Morris","avatar_url":"https:\/\/secure.gravatar.com\/avatar\/843ff6e7a8fe5fc92109b47a45f34b6cf0ea499e6e788db23456c838b0ae6747?s=96&d=blank&r=g","0":null,"1":"","2":"","3":"","4":"","5":"","6":"","7":"","8":""}],"_links":{"self":[{"href":"https:\/\/blogs.duanemorris.com\/coronaviruscovid19\/wp-json\/wp\/v2\/posts\/531","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/blogs.duanemorris.com\/coronaviruscovid19\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/blogs.duanemorris.com\/coronaviruscovid19\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/blogs.duanemorris.com\/coronaviruscovid19\/wp-json\/wp\/v2\/users\/6"}],"replies":[{"embeddable":true,"href":"https:\/\/blogs.duanemorris.com\/coronaviruscovid19\/wp-json\/wp\/v2\/comments?post=531"}],"version-history":[{"count":0,"href":"https:\/\/blogs.duanemorris.com\/coronaviruscovid19\/wp-json\/wp\/v2\/posts\/531\/revisions"}],"wp:attachment":[{"href":"https:\/\/blogs.duanemorris.com\/coronaviruscovid19\/wp-json\/wp\/v2\/media?parent=531"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/blogs.duanemorris.com\/coronaviruscovid19\/wp-json\/wp\/v2\/categories?post=531"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/blogs.duanemorris.com\/coronaviruscovid19\/wp-json\/wp\/v2\/tags?post=531"},{"taxonomy":"author","embeddable":true,"href":"https:\/\/blogs.duanemorris.com\/coronaviruscovid19\/wp-json\/wp\/v2\/ppma_author?post=531"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}