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debts of the corporation

By Earl Altman | 2 Minutes Read October 5, 2010

When are directors liable to employees for debts of the corporation?

It is an accepted principle of corporate law that the owners or managers of a corporation are not legally liable personally for the debts of that corporation. However, since the inception of limited liability, corporations have sought to avoid payment of various debts by hiding behind what is referred to as the “corporate veil”. Some of these efforts have been so flagrant a misuse of the principle that courts have struggled to “pierce the corporate veil” and impose legal liability on directors of the corporation for certain conduct.

Article by Earl Altman / Employment Standards / Business Corporations Act, canada pension plan, Canada Revenue Agency, canadian employment law, corporate law, corporate veil, debts of the corporation, directors’ liability insurance, Employment Insurance Act, employment law, liabilities to employees, liability of directors of the corporation, limited liability, ontario, pierce the corporate veil

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