Corporate Liability for Process Server
When a business decides to incorporate, there are numerous things to manage, and one of them is appointing a corporate representative for service of process. The matter, however, is that lots of individuals don’t know what it is.
A company or a limited liability company (LLC) is an official business entity. According to legislation, it is considered as a ‘individual’ independent of the shareholders. That means it functions independently, exactly like a person would in business. It may be sued, and it must file taxes. If sued, the bankers can’t be named as defendants and this shield from personal liability is one of the biggest advantages of incorporating.
The company, however, must run in a specific way so as to gain process server corporate protection. This is loosely known as corporate compliance. If the company is in compliance, then the corporate shield protects the shareholders. If it is not the personal assets of the people involved can be at risk of liability.
There’s legal fiction when it comes to corporations and LLCs. Though they are considered as an ‘Independent individual’ legally, they’re clearly not blood and flesh. This often creates conflict with other fields of law. By way of example, an individual can simply pursue a suit if they serve it on the defendant. This is accomplished by sending them the lawsuit copy. However, this is sometimes hard to do to a company as there’s no actual body.
Fundamentally, an individual being is designated to act on behalf of their firm. If someone would like to sue, they deliver the legal record to the agent for service of process server, who then forwards it to the proper individual in the corporation.