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APEGS NPPE Exam - Topic 2 Question 12 Discussion

Directors and officers of a corporation cannot be held personally liable for
A) an unsecured corporate debt
B) fraudulent misrepresentation
C) unpaid employee wages
D) tax evasion

APEGS NPPE Exam - Topic 2 Question 12 Discussion

Actual exam question for APEGS's NPPE exam
Question #: 12
Topic #: 2
[All NPPE Questions]

Directors and officers of a corporation cannot be held personally liable for

Show Suggested Answer Hide Answer
Suggested Answer: A

NPPE materials explain the principle of corporate limited liability. Directors and officers are generally not personally liable for unsecured corporate debts, provided they act within their authority and without wrongdoing.

Options B, C, and D can result in personal liability under Canadian law, particularly where misconduct, statutory violations, or fraud are involved. Therefore, option A is correct.


by Nu at Jun 19, 2026, 04:50 PM

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Coral
3 days ago
C) unpaid employee wages is tricky. They might be held accountable for that.
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Rasheeda
8 days ago
I agree, but B) fraudulent misrepresentation seems risky. They could be liable.
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Felicitas
14 days ago
I think it's A) an unsecured corporate debt. They’re protected from that.
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Gladys
19 days ago
I thought they could be liable for tax evasion, interesting!
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Elenora
24 days ago
B) and D) definitely lead to personal liability though.
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Elin
29 days ago
Wait, so they can't be liable for unpaid wages? That seems off.
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Nakisha
1 month ago
Totally agree, that's how corporate protection works!
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Nida
1 month ago
A) is correct, they can't be held personally liable.
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Vicente
1 month ago
I’m confused about this one. I thought they could be liable for fraudulent misrepresentation, which makes me question if it’s B.
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Jamal
2 months ago
I practiced a similar question about liability, and I think it was about tax evasion. So, I’m leaning towards D being the right answer here.
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Rikki
2 months ago
I'm not entirely sure, but I feel like unpaid employee wages could be a tricky area. I might lean towards C, but I need to double-check that.
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Alease
2 months ago
I think I remember that directors and officers are generally protected from personal liability for corporate debts, so maybe it's A?
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