A Shareholder in a Professional Corporation Generally Cannot Be Held

question 76

True/False

A shareholder in a professional corporation generally cannot be held liable for malpractice by other professionals at the firm.

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Definitions:

Bailee

A person or entity to whom goods are entrusted for a specified purpose by the bailor.

Bailed Property

Items temporarily entrusted to another person under a bailment agreement, where the recipient (bailee) is obligated to return them or manage them in a particular way.

Exculpatory Clause

A contract term that releases one party from liability for wrongful acts or negligence.

Public Policy

A course of action or regulatory measures adopted by a government to address issues of public concern.