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Shareholders Beware! When Individual Shareholders May Be Left Holding the Bag for Environmental Liability  


Author:  Heidi B. Goldstein.; Christopher D. Wiest.


Source: Volume 24, Number 03, Spring 2007 , pp.226-237(12)




Journal of Taxation of Investments

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Abstract: 

Imagine that you put a call into your broker and decide to make an investment in a company. You attend a few board meetings and provide some advice to the company, but before you know it, the company goes out of business after incurring significant environmental fines and penalties, or becoming embroiled in litigation for environmental misconduct. You might expect the stock price to fall, no dividends to issue, or you may even lose the value of your initial investment. But could a shareholder’s liability be extended even farther? In certain circumstances, the answer is yes.

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Affiliations:  1: Thompson Hine LLP; 2: Thompson Hine LLP.

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