A Company filed a claim against its officers seeking to impose personal liability for a series of decisions causing huge losses.
The Court held that it will be possible to impose personal liability on officers of a company where it is proven that they breached their duty of care and there is a linkage between the damage caused and the breach of duty. In review a Court will give the officers the widest discretion and will not replace the officer’s discretion with its own. Even if the Court reaches a different outcome to that reached by the officers, and even if the Court is convinced that the officers were wrong in their judgment, this is not sufficient to impose personal liability. Therefore, and because in that case the officers reviewed the issue before they have made their decision, and because they were assisted by professionals before making a decision, the Court rejected the claim.