When judgment of ouster is rendered against a corporation on account of the misconduct of the directors or officers thereof, such officers shall be jointly and severally liable to an action by anyone injured thereby.
§ 25-21,143.Ouster of corporation; liability of officers for misconduct.
Article 21: Special Proceedings and Actions · Not amended since original codification · Last verified July 22, 2026
In one sentenceWhen a court orders a corporation ousted because of misconduct by its directors or officers, this section makes those directors or officers jointly and severally liable to a lawsuit by anyone injured as a result.
Full Text of § 25-21,143
Source
R.S.1867, Code § 726, p. 519; R.S.1913, § 8350; C.S.1922, § 9302; C.S.1929, § 20-21,134; R.S.1943, § 25-21,143.
Plain-English Summary
Ousting the corporation does not let the people who caused the trouble walk away untouched. Section 25-21,143 reaches past the corporate entity to the individuals responsible. When judgment of ouster is rendered against a corporation on account of the misconduct of the directors or officers thereof, those officers become jointly and severally liable to an action by anyone injured by that misconduct.
Joint and several liability means an injured party is not forced to divide a claim proportionally among every director or officer involved, nor is that party defeated because one wrongdoer cannot pay. Each liable officer answers for the whole injury, leaving them to sort out contribution among themselves, while the person hurt by the misconduct that led to ouster has a direct path to recovery.
Frequently Asked Questions
Who becomes personally liable when a corporation is ousted for misconduct?
The directors or officers whose misconduct led to the judgment of ouster.
What does "jointly and severally liable" mean here?
It means an injured party can pursue any one, several, or all of the liable directors or officers for the full amount of the injury, not just a proportional share.
Who can bring the action against those directors or officers?
Anyone injured by the misconduct that led to the corporation’s ouster.
Does this liability apply regardless of which director or officer caused the misconduct?
The section attaches liability to the directors or officers whose misconduct caused the ouster, tying liability to the individuals responsible for that misconduct.
How does this section relate to the trustees appointed under Section 25-21,136?
The trustees wind up the corporation’s own affairs after dissolution; this section instead lets injured third parties go directly after the directors or officers whose misconduct caused the ouster.
Source & verification. Section text and the amendment-history citation are
reproduced verbatim from the Nebraska Legislature, Revisor of Statutes, enacted by the
Nebraska Legislature. Last verified July 22, 2026. ·
Official source
Also known as: officer liability for corporate ousterdirectors jointly and severally liablemisconduct causing corporate dissolutionsuing officers after an ouster judgmentpersonal liability for corporate misconduct