Corporate Liability
/ˈkɔːrpərɪt laɪəˈbɪlɪti/
Definitions
- (n.) The legal responsibility of a corporation for acts or omissions, including those of its employees or agents, under laws governing corporate conduct.
The company faced corporate liability for environmental damages caused by its factory.
- (n.) The doctrine that holds a corporation accountable for crimes or torts committed by individuals acting within the scope of their employment.
Corporate liability allows prosecution of a company when its executives engage in fraudulent activities.
Forms
- corporate liability
Related terms
See also
Commentary
Corporate liability concepts vary by jurisdiction; drafters should clearly specify the scope of acts covered and the applicable legal standards.
This glossary is for general informational and educational purposes only. Definitions are jurisdiction-agnostic but reflect terminology and concepts primarily drawn from English and American legal traditions. Nothing herein constitutes legal advice or creates a lawyer-client relationship. Users should consult qualified counsel for advice on specific matters or jurisdictions.