What is the test to determine whether a director of a company is personally liable?
Ontario, Canada
The following excerpt is from Zeifmans LLP v. Mitec Technologies Inc., 2019 ONSC 3643 (CanLII):
In determining whether personal liability on the directors is a fit remedy, it is appropriate to consider whether the directors acted in bad faith and if the directors received a personal benefit. Although those factors are relevant, neither is a necessary condition in determining whether personal liability is an appropriate remedy: Wilson v. Alharayeri, at para. 50. Did the Directors Obtain a Personal Benefit?
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