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Directors and officers of a corporation cannot be held personally liable for
Suggested Answer: A
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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.
12 comments · newest first
CO
Coral
2 months ago
C) unpaid employee wages is tricky. They might be held accountable for that.
RA
Rasheeda
2 months ago
I agree, but B) fraudulent misrepresentation seems risky. They could be liable.
FE
Felicitas
2 months ago
I think it's A) an unsecured corporate debt. They’re protected from that.
GL
Gladys
2 months ago
I thought they could be liable for tax evasion, interesting!
EL
Elenora
2 months ago
B) and D) definitely lead to personal liability though.
EL
Elin
2 months ago
Wait, so they can't be liable for unpaid wages? That seems off.
NA
Nakisha
3 months ago
Totally agree, that's how corporate protection works!
NI
Nida
3 months ago
A) is correct, they can't be held personally liable.
VI
Vicente
3 months ago
I’m confused about this one. I thought they could be liable for fraudulent misrepresentation, which makes me question if it’s B.
JA
Jamal
3 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.
RI
Rikki
3 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.
AL
Alease
4 months ago
I think I remember that directors and officers are generally protected from personal liability for corporate debts, so maybe it's A?