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ARTICLE · 10 APRIL 2013

No Stay For Order To Former Officers And Directors

Siskinds LLP
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The Environmental Review Tribunal has refused to stay a multimillion dollar order to the former officers and directors of a bankrupt company and its parent, pending appeal, whether or not the Ministry of the Environment had jurisdiction to issue the Order.

CanadaEnvironment
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The Environmental Review Tribunal has refused to stay a multimillion dollar order to the former officers and directors of a bankrupt company and its parent, pending appeal, whether or not the Ministry of the Environment had jurisdiction to issue the Order. See Baker v. Director, Ministry of the Environment, Case Nos.: 12-158 to 12-169.

What does this mean for officers and directors of companies with past or present operations or properties in Ontario? It means that it is not enough for you to comply with the duties of officers and directors set out in s. 194 of the Environmental Protection Act. If the Ministry issues an order some day, all of your personal assets may be at stake, unless you are well covered with millions of dollars of directors' and officers' insurance, and unless the insurance will continue to cover you after the corporation stops paying premiums and after you leave the board. All of this whether or not your corporation caused the contamination,

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