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Canada: Director and Officer Liability
In Canada, directors and officers of corporations may be subject to personal liability while acting within their corporate capacity. Such personal liability is intended to ensure that directors are accountable to shareholders and are responsible for the failure of a corporation to meet its legal obligations. Certain industries, such as banking and transportation, are subject to special regulations that may give rise to liabilities particular to such regulatory scheme.
Traditionally, director and officer obligations have extended only to shareholders of a corporation. Recently, however, courts in Canada have sugg(...)
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