Recent Developments In Director And Officer Liability

Below, we discuss three recent topics of which directors should be aware pertaining to their potential for liability: (i) the Fighting Against Forced Labour and Child Labour in Supply Chains Act; (ii) Caremark duties and when they might extend to directors of Canadian companies; and (iii) insolvency exclusions in directors' and officers' insurance.

The Fighting Against Forced Labour and Child Labour in Supply Chains Act

Brought into force on January 1, 2024, the Fighting Against Forced Labour and Child Labour in Supply Chains Act (the Act) underscores Canada's international commitment to fighting against modern slavery by creating reporting obligations for many larger Canadian corporations that are carrying out certain described activities (producing goods anywhere in the world, importing goods into Canada, or controlling an entity that does these things).