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BOD member w/ an assumed name?

Discussion in 'Uncategorized Threads' started by skeet_man, Nov 18, 2007.

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  1. skeet_man

    skeet_man Well-Known Member

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    We have a member of our board who wishes to operate under an assumed name, presumably to insulate themselves from possible liability issues should the club ever be sued. What is the legality of this, and what if any issues does this bring up for the other directors for allowing this? I realize that trying to operate under an alias to protect yourself from a lawsuit is probably a pipe dream, and I'm thinking that any vote they cast on an issue would be void as they are not acting under their legal name. Club in question is in NY if that helps.
     
  2. likes-to-shoot

    likes-to-shoot Well-Known Member

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    I always thought that you sued the person not the name. If he is that afraid of a lawsuit what kind of decisions do you think he would make?

    Bill
     
  3. scott calhoun

    scott calhoun Well-Known Member

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    Do you think this person has found the loophole that nobody else has ever found? I'm sure there are a lot of BOD members of corps across the country that wish they would have thought of that.

    In fact, maybe we should all operate our daily business under assumed names to ensure that we would never be responsible for anything we do.

    Scott
     
  4. Bridger

    Bridger Member

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    Check your state's statutes but in many a volunteer in a BOD position is protected from liability. Aside from that the club still should have adequate general liability and a director and officers liability policy. This guy is a nut case if he thinks an assumed name is going to protect him and the club should proabably look elsewhere for someone to serve.
     
  5. Cherokee Kid

    Cherokee Kid TS Member

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    Did he hire someone to help him be that dumb?
     
  6. C1

    C1 Member

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    How did someone that stupid get on the BOD in the first place?
     
  7. harleypilot

    harleypilot Member

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    If you have an umbrella policy, you will be covered as long as you are not receiving compensation for your work as a board member.
    Umbrella policies for a million or more are very reasonable, only a couple of hundred dollars a year.

    As stated in other responses though, maybe anyone like this would be better off just staying off the board. Also, any member could be sued the same as a board member.

    Jim
     
  8. skeet_man

    skeet_man Well-Known Member

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    "How did someone that stupid get on the BOD in the first place?" You're telling me LOL

    At any rate, this provides me some good information. @ any rate, I don't associate w/ this club much anymore, so my interest in club there politics has drastically fallen.
     
  9. mixer

    mixer Well-Known Member

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    a/k/a's don't work. He could be Joe Blow a/k/a Willy Wonker and everyone will know who the a/k/a really is anyway. Perhaps he's embarrassed to be associated with the club under his real name.


    Eric
     
  10. phirel

    phirel TS Member

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    I suspect the person wishes to avoid responsibility for any actions the club is forced to take that may be unpopular with the membership. This matter does have some parallel with attitudes on this site.

    Pat Ireland
     
  11. JB Logan Co. Ohio

    JB Logan Co. Ohio TS Member

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    If the club is incorporated the BOD should have no worries about being PERSONALLY sued. Only assets that belong to the club could be attached, not personal assets.

    JB=Jerry Beach 8503917
     
  12. phirel

    phirel TS Member

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    Jerry- It is not difficult to break the corporate shield and place liability on the members of the BOD. I have a business that is incorporated and I own all of the shares in the corporation. A first year law student should easily be able to go beyond the corp and make me liable if the actions of my corp provide standing to another.

    Pat Ireland
     
  13. JBrooks

    JBrooks TS Member

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    Actually, Pat, if you review case law, in most States it is extremely difficult to pierce the corporate shield even at the administrative law level. While single shareholder corps are more suspect at providing just an alter-ego, there is a tremendous burden of proof on the complainant. A non-profit club with an otherwise unrelated BOD would be virtually impossible to pierce.

    Absent criminal fraud, Courts have been very reluctant to diminish the singular standing of corporations as that would open a plethora of litigation opportunities and contravene the intent of the laws establishing legal entities such as Partnerships, LPs and Corporations.

    I only post this to reassure the members of gun club BODs that they really do enjoy a significant level of individual legal protection. However, what they don't enjoy is any level of economic protection from legal fees to defend their BOD actions. That is why every club should have liability insurance.
     
  14. smokerz

    smokerz TS Member

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    **That is why every club should have liability insurance.**

    And every member should have an unbrella policy. A million dollar umbrella is only few hundred dollars a year.
     
  15. g7777777

    g7777777 TS Supporters TS Supporters

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    there is a tremendous amount of wrong information posted above

    but the bottom line- who cares?

    If you are interested in doing anything like this- see a local lawyer who handles this area of the law

    regards from Iowa

    Gene

    PS - one general rule is that fraud or illegal activity resulting from the fraud is never protected
     
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