Newsletters

Business & Corporate Entities: Corporations

Professional Corporation Basics

Criminal Liability of Corporate Officers

Under Section 807 of The Sarbanes-Oxley Act of 2002 (Act),1 any person who knowingly commits securities fraud is subject to a hefty fine, a prison term of up to 25 years, or both. Section 807 does not criminalize securities laws violations for the first time; however, it does combine several existing laws so as to facilitate and streamline federal prosecutions. Section 807 does impose significantly harsher criminal penalties than the penalties prescribed under prior laws.

Whistleblowers Under the Safe Drinking Water Act

The Safe Drinking Water Act provides protection for whistleblower-employees who file claims under the statute.

Significance of Par Value of a Stock

Common stock and other securities may be issued with or without a stated face value or "par" value. Issuing stock with or without par or face value may have several consequences.

Director and Officer Liability under OSHA

Employers have a general duty under the Occupational Safety and Health Act (OSHA)1 to provide a workplace free from "recognized" hazards. A violation of this duty can lead to criminal sanctions2 in addition to civil penalties. An employer can also be exposed to liability under occupational safety and health regulations promulgated by the Secretary of the Department of Labor. Directors and high-level executive officers must act to reduce or eliminate workplace dangers or risk OSHA liability.