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ARTICLE · 15 MAY 2015

Environmental Liability Of Directors And Officers

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The directors' and officers' liability towards the Minister for environmental damage can be secured by a legal hypothec on all their movable and immovable property, as was the case with Ms. Marshall.

CanadaEnvironment
Jean-Benoît Pouliot
Jean-Benoît Pouliot
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On August 29, 2013, the Minister of Sustainable Development, Environment and the Fight against Climate Change (the "Minister") ordered the company Les Équipements de puissance Reliance Ltée ("Reliance") to clean up its storage site for PCB-contaminated material in Pointe Claire, Quebec. Reliance failed to do so, whereupon the Minister proceeded to have the site decontaminated and secured, at a cost of $3.8 million. On March 5th of this year, Radio-Canada revealed1 that in connection with this matter, the Minister had registered a notice of legal hypothec against a house belonging to Ms. Birdie Marshall, on the basis that she was the director and shareholder of Reliance. This matter highlights the importance of being aware of certain rules in Quebec regarding the environmental liability of directors and officers.

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