A recent case out of Ontario serves as a cautionary tale for directors’ and officers’ environmental liability. It signals the willingness of regulators to seek out all potentially responsible parties to recover the costs of remediation, which could include ordering directors and officers to personally cover interim remediation costs pending the outcome of any regulatory or court proceedings.
In today’s competitive business environment, directors and officers are expected to drive the financial success of their companies while adhering to the highest standards of business conduct. In so doing, directors and officers can attract potential personal liability for wrongful conduct. One aspect of management that is attracting greater scrutiny is decision-making within the context of companies’ environmental performance.
This article was reproduced with permission of the publisher from Canadian Underwriter, January 2014 edition.