Individuals who serve on the boards of directors and officers of corporations and non-profit institutions face a new and frightening reality: They may no longer be insulated by the corporate structure against personal liability for an organization’s wrongdoing. This new reality dawned just over a year ago, with the publication of a memorandum by U.S. Deputy Attorney General Sally Yates. The so-called “Yates Memo” says, in part:
“One of the most effective ways to combat corporate misconduct is by seeking accountability from the individuals who perpetrated the wrongdoing. Such accountability is important for several reasons: it deters future illegal activity, it incentivizes changes in corporate behavior, it ensures that the proper parties are held responsible for their actions, and it promotes the public’s confidence in our justice system.”
