Create a 1 page essay paper that discusses The topic can be proposed by the writers.Limited liability clause of an incorporated entity protects shareholders from all sorts of personal liability of the

Create a 1 page essay paper that discusses The topic can be proposed by the writers.

Limited liability clause of an incorporated entity protects shareholders from all sorts of personal liability of the corporation beyond the shareholder’s investment in the entity. In addition, a corporation’s director is only liable for negligence that occurs within the formal scope of duty, torts that the director’s corporation or employees commit under the director’s powers, and conflict of interest (Mallor, et al., 2013).

Facts of the case identify Ecco’s failure to pay for a shipment. This is a breach of contract by the corporation and does not identify liability of an executive of a corporation because it cannot be attributed to negligence, tort, or conflict of interest of Sally as an executive. Sally also has no direct contract with African and the plaintiff can only claim her investments in the company and not a direct