Isabella and Emily both attended a recent seminar for directors regarding corporate governance.The seminar focused on the recent departure of certain courts from the traditional shielding of directors from personal liability where their actions were taken in furtherance of their duties to the company and their conduct was justifiable.What type of liability are Emily and Isabella concerned with?
A) liability in tort
B) liability in contract
C) statutory offence liability
D) criminal offence liability

Question

Quizplus · Accepted Answer

Liability in tort is concerned with wrongful acts that cause harm or loss, which can include breaches of duty by directors that don't align with their responsibilities to the company. The seminar's focus on courts not shielding directors for actions taken in their duties suggests a concern with tortious liability, where personal liability can arise from actions causing harm or loss, even if those actions were intended to benefit the company.

Isabella and Emily Both Attended a Recent Seminar for Directors