Director liability for unlawful approvals obligates restitution of profits and compensation for company losses. Liability of directors arises where they vote for or approve actions contravening the Act, other law, or the articles; such directors are jointly and severally liable to make good loss or damage to the Producer Company, and the company may recover from a director profits made from the contravention or amounts equal to loss or damage incurred, with such liability being additional to any other legal liability.
Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.
Provisions expressly mentioned in the judgment/order text.
Director liability for unlawful approvals obligates restitution of profits and compensation for company losses.
Liability of directors arises where they vote for or approve actions contravening the Act, other law, or the articles; such directors are jointly and severally liable to make good loss or damage to the Producer Company, and the company may recover from a director profits made from the contravention or amounts equal to loss or damage incurred, with such liability being additional to any other legal liability.
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