Directors and officers of corporations are often subject to potential personal liabilities as a result of their positions. This potential for personal liability may be increased in the insolvency context, where a corporation’s creditors will seek to collect on certain debts from alternate sources, such as directors and officers. Directors and officers often utilize insurance and various court mechanisms in order to mitigate their personal liabilities.
Canada, Company & Commercial, Insolvency & Restructuring, Insurance, Norton Rose Fulbright, Wage, Fiduciary, Board of directors, Misconduct, Income tax, Debt, Liability (financial accounting), Gross negligence, Companies' Creditors Arrangement Act 1933 (Canada), Bankruptcy and Insolvency Act 1985 (Canada)