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Corporate law: liability of a negligent company to another company and its shareholders separately?

  
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Corporate law: liability of a negligent company to another company and its shareholders separately?

Postby lawly1 » Tue Jul 24, 2012 2:46 am

If due to negligence of a satellite imaging company, a flood occurs and that consequently destroys an upcoming township..the fact that the satellite imaging company is liable is obvious..bt what troubles me is whether it is liable to the aggrieved township developing company alone or is it also liable to the stakeholders of the developer company. because two separate damages are occuring..one is the loss of business prospects of the developing company and the other is the loss of the profit motives of the stakeholders (investors). I'm just an amature so please correct me if my calculations are faulty..kindly refer me some case laws on this if possible.. thank you
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Corporate law: liability of a negligent company to another company and its shareholders separately?

Postby vohkinne » Tue Jul 24, 2012 2:59 am

The negligent company is only liable to the development company.

If the negligent company has paid adequate compensation to the development company, then the stakeholders (shareholders) of the development company would not have lost their investment because the compensation is added to the shareholders equity in the company.
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