photofly wrote: ↑Sun Dec 02, 2018 12:57 pm
However, that's not the same as saying that because they're only members (or shareholders) that their organization (club, company, whatever) shouldn't be held responsible because they don't want their club or company to suffer.
but I do recall you finding quotes to suggest that they were personally liable. I'm sorry - but they're not.
I posted a British link explicitly stating this is possible. I didn't invent it. If Canada in our little paradise states no one can be sued for anything -- so it seems sometimes -- fine.
Shareholders in a public company experience direct financial loss when their company is successfully sued -- say an SEC investigation for accounting fraud ----- certainly they can be called an "innocent" party. But are they? They are owners! Depends how one defines it, which as I said, a court would decide. I would think issues of active control come into it.
Instead of multiple shareholders, take a closely held company, involved daily in management decisions at a flying club, perhaps also holding management roles. That might change things. Again up to a court.
Rather than the ridiculous suggestion launched by Pelmet of the shareholders suing the plantiff, (the SEC in my example ) they can, and do, launch class action lawsuits against the company they hold shares in, to attempt to recover some of the losss in the value of their holdings.