The broad categories of external obligations corporations
Explain the broad categories of external obligations corporations?
Expert
The external obligations of corporations, pursuant to corporate governance, can be broken down into three broad categories:
1. Ordinary civil liability in contract and tort, including the large areas of service contracts and employment law that apply to individuals, partnerships, and corporations.
2. Statutes and regulations to protect creditors, investors, and the public in general, which apply especially to corporations.
3. Criminal and quasi-criminal liability of corporations for the acts of their officers, and the potential liability of officers and directors for their own acts and omissions committed in the course of performing their duties.
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