Director's Liability Under Norwegian Law

On personal liability of members of the board.

Under Norwegian law, representatives of the company, including board members, the company CEO as well as shareholders, may be held personally liable for damages caused by their actions or omissions on behalf of the company. Personal liability is especially applicable if the company is in financial distress, if the damage is caused to the company or if a claim towards the company otherwise would be meaningless or not compensate for the loss inflicted. An example of the latter is where the company is acquired based on misleading information.

This article is written for those contemplating putting forth a claim of personal liability against representatives of a company and for the representatives who have such claims brought against them. It is written based on our experience with board liability cases on behalf of our Norwegian and international clients.