N.Y. Business Corporation Law Section 1505
Professional relationships and liabilities

* (a) Each shareholder, employee or agent of a professional service corporation and a design professional service corporation shall be personally and fully liable and accountable for any negligent or wrongful act or misconduct committed by him or by any person under his direct supervision and control while rendering professional services on behalf of such corporation. * NB Effective until July 21, 2024 * (a) (i) Each shareholder, employee or agent of a professional service corporation and a design professional service corporation shall be personally and fully liable and accountable for any negligent or wrongful act or misconduct committed by him or by any person under his direct supervision and control while rendering professional services on behalf of such corporation.

(ii)

An employee stock ownership plan owning greater than twenty-five percent of the outstanding shares of a design professional service corporation organized under paragraph (b-1) of § 1503 (Organization)section fifteen hundred three of this article shall be under the supervision of the regents of the university of the state of New York, shall register with the state education department and shall be issued a certificate granting such employee stock ownership plan the authority to hold shares of such corporation. Such certificate shall be subject to professional misconduct provisions as set forth in article one hundred thirty of the education law. In addition, the failure to maintain an active registration with the state education department shall also subject such certificate to discipline as provided above. The secretary of state shall be the designated agent for service of process in any disciplinary matter involving a registered employee stock ownership plan.

(iii)

Any such employee stock ownership plan shall not influence, or attempt to influence, any decisions that fall within a design professional’s scope of practice. * NB Effective July 21, 2024 (b) The relationship of an individual to a professional service corporation or a design professional service corporation with which such individual is associated, whether as shareholder, director, officer, employee or agent, shall not modify or diminish the jurisdiction over him of the licensing authority and in the case of an attorney and counsellor-at-law, the other courts of this state.

Source: Section 1505 — Professional relationships and liabilities, https://www.­nysenate.­gov/legislation/laws/BSC/1505 (updated Jul. 29, 2022; accessed May 4, 2024).

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Accessed:
May 4, 2024

Last modified:
Jul. 29, 2022

§ 1505’s source at nysenate​.gov

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