My understanding is that members couldn't be responsible for club liabilities anyway. Am I wrong?
1) What about a director's liability for a decision made by the board?
2) Given that our club has no assets, would incorporating provide any protection anyway? (I'm remembering doctrine about undercapitalization and "piercing the corporate veil.")
Generally, no liability for officers and directors without a showing of misconduct.Unless, the club needs to enter into contracts with third parties, without assets or income, I do not see any exposure to liability to protect from.
Sorry--I wasn't clear. What if the club commits a tort (say a slip and fall in the hall negligently rented for a tournament)? Would incorporating protect the directors even if the corporation had no assets to cover the claim?
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