Note on Directors' Duties and Obligations Under Canadian Law and Custom

Directors of large publicly owned corporations have a very important role in the operations and success of these companies and the economy as a whole. These directors have decision-making responsibilities that affect many groups of stakeholders. Directors are bound by the Ontario Securities Act and by the Canada Business Corporations Act (or its provincial counterpart for provincially incorporated companies). Directors have several duties and failure to understand these responsibilities and duties exposes directors to liability.