Executive and non-executive directors are not immune from multi-million pound fraud and damages claims
While the chances of being at the receiving end of a multi-million pound claim as a director of a UK company may seem remote, companies are now less willing to take the chance.
And some recent scandals have shown that directors as well as non-executive directors can be at the centre of colossal fraud trials and damages claims. Recent examples include Lord Wakeham, formerly a non-executive director at Enron, who found himself providing testimony in the world’s most notorious corporate fraud trial.
All directors in the UK have a legal duty to display not only a reasonable level of skill, care and diligence in the discharge of their functions, but also to bring to bear such knowledge, skill and experience as they have. Furthermore, UK company law does not distinguish between executive and non-executive directors and thus both sets of directors share the same duties and responsibilities to shareholders, regulators and other stakeholders.
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