Directors' Liability
/dɪˈrɛktərz laɪəˈbɪlɪti/
Definitions
- (n.) The legal responsibility of company directors for breaches of duty or misconduct in managing the company.
The directors' liability was established after they approved the fraudulent transactions.
- (n.) The potential for directors to be held personally accountable for corporate debts or regulatory violations.
Directors' liability can extend to personal assets if the corporation is insolvent due to their negligence.
Forms
- directors' liability
Related terms
See also
Commentary
Directors' liability often arises from breaches of fiduciary duties or statutory obligations; precision in drafting is essential to delineate scope and limitations of such liability.
This glossary is for general informational and educational purposes only. Definitions are jurisdiction-agnostic but reflect terminology and concepts primarily drawn from English and American legal traditions. Nothing herein constitutes legal advice or creates a lawyer-client relationship. Users should consult qualified counsel for advice on specific matters or jurisdictions.