Corporate Liability of Process Server
When a company decides to incorporate, there are various things to handle, and among them will be appointing a corporate agent for service of process. The issue, however, is that many people don’t understand what it is.
In accordance with law, it is considered as a ‘individual’ independent of the shareholders. That means it functions independently, just like a person would in company. It can be sued, and taxes must be filed by it. If sued, the shareholders can not be named as defendants and this shield from personal liability is one of the biggest benefits of incorporating.
The company, however, must run in a specific way in order to gain corporate protection. This is loosely known as compliance. If the firm is in compliance, then the corporate defense protects the shareholders. When it’s not the personal assets of the individuals involved can be in danger of liability.
There is legal fiction in regards to corporations and LLCs. Even though they are thought to be an ‘Independent person’ legally, they are clearly not flesh and blood. This frequently creates conflict with other areas of law. By way of example, an individual can simply pursue a suit if they process server serve it on the defendant. This is accomplished by delivering them the litigation copy. However, this is sometimes hard to do to your business since there’s no actual body.
Basically, an individual being is advised to act on behalf of their firm. If someone wants to sue, they deliver the legal record to the agent for service of process, who then forward it to the proper individual in the corporation.