Above Board @ Gowlings - March 2005

Edited by Julie-Martine Loranger

Contents

• Director Liability in the New Era of Corporate Governance

• New Corporate Governance Practices

• A Look to the Future

Director Liability In The New Era Of Corporate Governance

The last few years have witnessed an explosion of corporate scandals. Class actions, legal proceedings and investigations have grown exponentially since the early 2000s and regulators have broadened the scope of personal accountability to include corporate directors.

To restore investor confidence and thwart future scandals, American and Canadian regulators have scrambled to implement corrective legislation with greater due diligence requirements and stiffer penalties for illegal and/or questionable practices.