An overview of personal liabilities for board members under the new act.
Being appointed to a board of directors is a prestigious milestone, but it carries profound legal responsibilities. The latest legislative amendments have tightened the rules around director liabilities, specifically regarding insolvency and fiduciary duties. Ignorance is not a defense. Directors are now expected to be financially literate and actively question management reports. Comprehensive Directors and Officers liability insurance is becoming a prerequisite for joining any ambitious corporate board.