Our Board of Directors is about to negotiate a new 20-year lease with our landlord. We are concerned that the Board members who are signing the lease won’t be personally liable for the lease if, worst case scenario, our organization becomes bankrupt.
That’s the beauty of the corporate form. Ordinarily, absent intentional fraud or other willful misconduct, officers and directors are not personally liable for the contractual obligations of the corporation unless they accept personal responsibility in the agreement. But, as a business proposition, are you sure you want to be committed for 20 years?
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