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(p. 322) 14. Directors’ liabilities for breach of duty 

(p. 322) 14. Directors’ liabilities for breach of duty
(p. 322) 14. Directors’ liabilities for breach of duty

Brenda Hannigan

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date: 25 October 2020

This chapter considers the extent of the potential liabilities of directors for breach of their duties. There are a variety of possible consequences where directors are found to have acted in breach of duty. The chapter focuses on the extent of a director's civil liability for breach of fiduciary duty and the liability of third parties involved in some way in that breach of duty. The ability to mitigate potential liabilities through reliance on indemnity provisions, insurance, and by application to the court for relief is also considered. The discussions cover the claim for: breach of fiduciary duty; liability of third parties; claims for negligence; and managing potential liabilities.

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