Directors Can Be Responsible for Unpaid Taxes, Payroll Deductions, Damage

question 5

Essay

Directors can be responsible for unpaid taxes, payroll deductions, damage to the environment and for not complying with either consumer protection or human rights legislation. Courts have found directors liable, using an objective test, for not exercising due diligence or a reasonable degree of care and skill. Comment on whether you think this imposes too much responsibility on directors and whether it dilutes the concept of a separate legal entity.

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Definitions:

Illness

A state of being sick or afflicted with a disease or disorder, affecting the body or mind.

Stressful Circumstances

Situations that cause significant strain or tension on an individual, affecting their mental and physical well-being.

Cardiovascular Health

The condition and functioning of the heart and blood vessels, which involves maintaining optimal blood flow, blood pressure, and heart function.

Type A Behavior

A pattern characterized by high levels of competitiveness, self-imposed stress, aggression, and a sense of urgency.