A shareholder in a company filed a personal claim against a director for negligent misrepresentation when the shareholder purchased the shares. The director argued that the representations were made on behalf of the company and thus he is not liable.
The Court held that if an organ of a company committed a personal tort, he will be personally liable, even if the was made on behalf of the company, unlike contractual obligations where the corporate veil will shield the organ. In this case the director made misrepresentations which were based upon, the direct is personally liable for the damage.