(Federal Court of Appeal of Canada) The court described the question whether, and if so in what circumstances, a director should be liable with the company as a joint tortfeasor as ‘a very difficult question of policy.’ Mr Justice Le Dain: ‘On the one hand, there is the principle that an incorporated company is separate and distinct in law from its shareholders, directors and officers, and it is in the interests of the commercial purposes served by the incorporated enterprise that they should as a general rule enjoy the benefit of limited liability afforded by incorporation. On the other hand, there is the principle that everyone should be answerable for his tortious acts.’
Judges:
Mr Justice Le Dain
Citations:
(1978) 89 DLR (3d) 195
Jurisdiction:
Canada
Cited by:
Cited – MCA Records Inc and Another v Charly Records Ltd and others (No 5) CA 5-Oct-2001
The court discussed the personal liability of a director for torts committed by his company: ‘i) a director will not be treated as liable with the company as a joint tortfeasor if he does no more than carry out his constitutional role in the . .
Lists of cited by and citing cases may be incomplete.
Company
Updated: 13 May 2022; Ref: scu.230360