Environmental Liability: Officers And Directors

Environmental regulators across Canada appear to be naming directors and officers of companies personally liable for environmental orders more frequently, particularly in situations of corporate bankruptcy or insolvency. Directors and officers should consider all available management strategies and actions to avoid the issuance of environmental orders and, if environmental orders are made, that the company has sufficient assets in place to cover the costs.

Legislation and "person responsible" for environmental issues

The concept of "person responsible" for environmental liability is broadly defined in environmental legislation across Canada to potentially include current and past directors and officers. Joint, several or retroactive liability may be imposed, and any one or more of the "persons responsible" may be named. Importantly, contracts do not alter regulatory liability as a "person responsible".