Directors and officers are on the hook for regular earned salary but severance payments may be harder for employees to get
An unfortunate reality in tough economic times is that numerous job losses and corporate bankruptcies are not uncommon. When a corporation declares bankruptcy leaving employees out of a job, it raises the question of whether directors and officers of the corporation can be held personally liable in connection with severance or termination payments owing to the company’s employees. The answer to that question is not black and white, but instead turns on the nature of the payments owing to the employees.
