What constitutes reasonable care?
Article Abstract:
Ontario's environmental laws requires corporate directors or officers to exercise 'reasonable care' to prevent contaminants from being discharged into the environment. Bata Industries Ltd was among a number of companies against whom 'reasonable care' cases have been filed. The company, together with two of its executives, were found guilty for failing to take steps to stop wastes from leaking out of storage drums. Several issues were raised by the court decision and findings. These include questions on parity, indemnification, the liability of outside directors and the definition of reasonable care.
Publication Name: CA Magazine
Subject: Business
ISSN: 0317-6878
Year: 1992
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In whose interest?
Article Abstract:
A Canadian superior court has made a precedent-setting, comprehensive decision affecting corporate governance. The case involved a publicly-owned store chain, which was losing money, and its subsidiary, which was flourishing. Both firms went bankrupt. The court ruled that the subsidiary's bankruptcy was due to the fact that its retained earnings had been stripped into its parent. The court held that the parent firm ought to have taken into account not only the interests of its shareholders but also the interests of its subsidiary's creditors, who can be considered stakeholders of that firm.
Publication Name: CA Magazine
Subject: Business
ISSN: 0317-6878
Year: 1999
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Hot-potato cleanup
Article Abstract:
Creditors in Canada are confronted by environmental liabilities arising from foreclosed properties. During the 1980s lenders were not held responsible for pollution. However, during the 1990s increasing public concern for the environment prompted laws that made owners, people in control and people responsible for pollution liable for cleanup costs. Furthermore, provincial and federal laws hold lenders responsible for environmental damages. It is important, therefore, for lenders to evaluate properties for any possible environmental liability before accepting them for mortgage.
Publication Name: CA Magazine
Subject: Business
ISSN: 0317-6878
Year: 1992
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