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Part IV Liabilities of Directors, 24 Liabilities of Directors to Third Parties

Lexa Hilliard KC

From: Company Directors: Duties, Liabilities, and Remedies (4th Edition)

Edited By: Mark Arnold KC, Simon Mortimore KC

From: Oxford Legal Research Library (http://olrl.ouplaw.com). (c) Oxford University Press, 2023. All Rights Reserved.date: 14 July 2024

Approved person — Conduct of business regulation — Regulated persons — Breach of statutory duty

This chapter focuses on the liabilities of directors to third parties. Incorporation with limited liability shields a director from the routine liabilities associated with carrying on the business of the company. While the liabilities are the creation of the common law, the statute has an increasing role to play where the imposition of personal liability upon a director to a third party is appropriate. The chapter notes the circumstances in which a director can be held liable for costs incurred by the successful party in litigation where the company has sued or been sued. It also discusses the exposure of a director to proceedings for contempt of court where a company breached a judgment or order of the court.

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