Practice question
The president and one director knowingly devise a fabricated charge and direct an illegal dismissal for personal retaliation. Their malicious participation is pleaded and proved. A finance officer had no participation, knowledge, bad faith, or separately established legal basis for liability. Which conclusion is best?
- All three are necessarily liable solely because they held office.
- No individual may ever be liable if a corporation exists.
- Only the finance officer is liable because money is involved.
- The corporation's obligation vanishes once an individual acts maliciously.
- Personal liability may attach to the proved participants; it does not automatically extend to the uninvolved finance officer.
Legal references
- https://lawphil.net/judjuris/juri2024/apr2024/gr_265610_2024.html — Borromeo v. Lazada, G.R.265610, April3 2024, main opinion, corporate-officer liability.
- https://lawphil.net/statutes/repacts/ra2019/ra_11232_2019.html — Revised Corporation Code, Section30, liability of directors, trustees or officers.
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