Director Liability and Duty of Care

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Five years ago we blogged about director liability issues. Nothing has changed, but many companies are not yet taking this responsibility seriously. In Ontario, the Environmental Protection Act, clearly states:

“194 (1) Duty of director or officer
Every director or officer of a corporation has a duty to take all reasonable care to prevent the corporation from,

194 (1) (a) discharging or causing or permitting the discharge of a contaminant, in contravention of,

194 (1) (a) (i) this Act or the regulations, or

194 (1) (a) (ii) an environmental compliance approval, certificate of property use, renewable energy approval, licence or permit under this Act;

194 (1) (b) failing to notify the Ministry of a discharge of a contaminant, in contravention of,

194 (1) (b) (i) this Act or the regulations, or

194 (1) (b) (ii) an environmental compliance approval, certificate of property use, renewable energy approval, licence or permit under this Act;

194 (1) (c) contravening section 27, 40, 41 or 47.3 in respect of hauled liquid industrial waste or hazardous waste as designated in the regulations relating to Part V;

194 (1) (d) contravening section 93 or 184;

194 (1) (e) failing to install, maintain, operate, replace or alter any equipment or other thing, in contravention of an environmental compliance approval, certificate of property use, renewable energy approval, licence or permit under this Act; or

194 (1) (f) contravening an order under this Act, other than an order under section 99.1, 100.1, 150 or 182.1. 2005, c. 12, s. 1 (65); 2009, c. 12, Sched. G, s. 25; 2010, c. 16, Sched. 7, s. 2 (89-91).
194 (1.1) Contraventions of s. 14
Clause (1) (a) does not apply to a contravention of section 14 unless the contravention causes or is likely to cause an adverse effect. 2005, c. 12, s. 1 (65).”

In fact, Duty of Director and similar terms are growing trends across all jurisdictions. Governments around the world are looking to place more responsibility or Directors and Management, which will force them to put in place robust compliance programs. To learn more about Comprehensive Compliance and how it you can reduce your organizational risk with Nimonik, contact us at info@nimonik.com