If I’m president of a corporation but have no control of operations and there is a loan that is due that the company is going to default on, am I personally reponsible for it?

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If I’m president of a corporation but have no control of operations and there is a loan that is due that the company is going to default on, am I personally reponsible for it?

There is a loan that is due that the company is going to default on. I have only signed a corporate resolution so the corporation could barrow money. I am not signed on the note.

Asked on March 27, 2013 under Business Law, Idaho

Answers:

Elena Eckert

Answered 8 years ago | Contributor

If you did not sign the note as a personal guarantor, then it is unlikely that you will be personally liable on the corporate debt. However, depending on the nature of the loan, the financial situation of the corporation at the time the resolution to borrow money was made, the existence and involvement of other officers, directors and/or shareholders, and whether or not your are also a shareholder of the corporation, there is a risk that the creditor will try to access your personal assets if the corporation defaults on the loan. I strongly recommend you seek an advice of a local business attorney.

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