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ARTICLE · 28 MAY 2020

Personal Liability For Corporate Fraud: What You Need To Know

As the COVID-19 pandemic continues to wear on, corporations must remain vigilant against the increased risk of fraud. Unfortunately, due to the covert nature of many fraudulent schemes, the full extent...

CanadaCriminal Law

As the COVID-19 pandemic continues to wear on, corporations must remain vigilant against the increased risk of fraud. Unfortunately, due to the covert nature of many fraudulent schemes, the full extent of the fallout will not likely be known for some time. It is not uncommon for the corporation responsible for the fraud to be insolvent or stripped of assets by the time the fraud is uncovered. When this happens, it is important to recovery to be able to hold the corporation's directors and officers personally liable.

In Canada, corporate directors and officers may be held personally liable for fraudulent conduct. An organization assessing whether it has a viable claim against a director in his or her personal capacity should consider the following questions: 

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