Legal alert

Director can be held personally liable

November 30, 2012
Legal alert

The Supreme Court ruled on 23 November 2012 that a managing director can be held personally liable if he has acted in breach of a personal duty of care, even if the company can also be held liable for the same actions.

This type of liability is governed by the standard rules on tort and does not require serious culpability on the part of the director. The Supreme Court also held that a director can be held personally liable, alongside the company, for tortious conduct by the company. In short, this is the case where a director is seriously culpable in a personal capacity with regard to that conduct.


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