Liability risk for corporate directors has never been higher than today. Increasingly people are concerned that suitably qualified individuals may be deterred from accepting positions as company directors. But what makes corporate directors so vulnerable?
Corporate directors are finding their decisions and actions scrutinized by an ever-growing list of powerful and active parties. Keeping the government, shareholders, creditors, employees, customers and even competitors satisfied is a formidable challenge. Decisions made in the boardroom are being questioned with greater frequency by those outside their walls. If something goes wrong, critics do not just scrutinize, they take action, formally challenging management decisions and actions in court or through regulatory channels. Under UK Law alone there are more than 250 areas of statutory liability. But the danger does not end there. As companies expand and open offices abroad, they encounter regulations and exposures which they are usually unfamiliar with. The business opportunities are good, but the risk of being sued is very high. This book focuses on the liabilities of corporate directors under English Law. It wants to clarify questions like what the potential personal liabilities for directors are or how directors can limit their exposure to liabilities.