N.Y. Business Corporation Law § 1505: Professional relationships and liabilities

§ 1505. Professional relationships and liabilities.

(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 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.

(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.