What to keep in mind
Review duties, actual powers, decisions, knowledge, available evidence, loss and causal connections.
A poor business outcome alone does not establish liability.
Distinctions often confused
The company's loss and a director's personal legal responsibility must be examined separately.
Frequently asked questions
Can directors be personally sued?
Potentially, when a recognized legal basis and required elements exist.
Does delegation of a task eliminate responsibility?
Not automatically; the nature and lawful limits of delegation matter.
Informational content. It is not a substitute for professional advice.