Directors can be responsible for unpaid taxes, payroll deductions, damage to the environment and for not complying with either consumer protection or human rights legislation. Courts have found directors liable, using an objective test, for not exercising due diligence or a reasonable degree of care and skill. Comment on whether you think this imposes too much responsibility on directors and whether it dilutes the concept of a separate legal entity.

Question

Quizplus · Accepted Answer

The Answer of Directors can be responsible for unpaid taxes, payroll deductions, damage to the environment and for not complying with either consumer protection or human rights legislation. Courts have found directors liable, using an objective test, for not exercising due diligence or a reasonable degree of care and skill. Comment on whether you think this imposes too much responsibility on directors and whether it dilutes the concept of a separate legal entity.

Directors Can Be Responsible for Unpaid Taxes, Payroll Deductions, Damage