Can a director of a corporation be held personally liable for the improper use of company funds?
British Columbia, Canada
The following excerpt is from Haney v. Toys, 1996 CanLII 2471 (BC SC):
17 The plaintiff relies on several authorities for the proposition that directors can become personally liable for such actions as causing company funds to be paid out to themselves without justification or authorization, and with the intent of defeating legitimate claims. Counsel cited Kepic v. Tecumseh Road Builders et al (1987), 18 C.C.E.L. 218 wherein the cause of action was for wrongful dismissal and was against the personal defendants for inducing the corporate defendants to breach their contract.
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