Corporate Law
Q. Can directors be personally liable for damages?
A.
Directors can be personally liable for damages caused by negligence, and can be sued by shareholders or third parties.
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Directors owe duty of care (Art. 330/Civil Code 644) and loyalty (Art. 355). Breach causing company loss leads to liability (Art. 423), enforceable via shareholder derivative suits (Art. 847). Third-party liability applies for willful or grossly negligent conduct (Art. 429).
This article provides general legal information and does not constitute legal advice. For specific legal issues, please consult with a qualified attorney.
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