What type of liability do corporate officers face for improper actions?

Corporate officers face criminal liability for improper actions, which means they can be held personally accountable for illegal activities conducted in the course of their duties. This type of liability applies when officers engage in acts such as fraud, embezzlement, or other criminal offenses that violate laws and regulations.

While limited liability protects shareholders' personal assets from the debts and obligations of the corporation, this protection does not extend to corporate officers who engage in wrongdoing. Officers may also face civil liability for breaches of duty or negligence, but the focus here is on criminal liability, which involves the potential for criminal charges and penalties, such as fines or imprisonment. This legal framework is designed to ensure that individuals in positions of authority are held responsible for their actions, particularly when those actions harm others or violate the law.