The principle of limited liability protects directors from liability for the torts and breaches of fiduciary duties they commit.

Question

Quizplus · Accepted Answer

The principle of limited liability protects directors from personal liability for debts incurred by the company, but it does not protect them from liability for torts or breaches of fiduciary duties they commit. Directors can still be held personally responsible for such actions.

The Principle of Limited Liability Protects Directors from Liability for the Torts