Liabilities of Directors as Joint Tortfeasors

Abstract

This article examines the tort liability of directors in relation to torts committed in connection with or in the course of the company’s activities. The difficulties in the law as to the tort liabilities of directors have often been perceived to arise from a conflict between company law principles and tort law principles. Various commentators and court decisions had previously limited the tort liability of directors upon the premise that this is necessary to give effect to the company law doctrines of limited liability and separate entity. A more recent approach in England, followed elsewhere, for example in Hong Kong, is to simply apply general principles of joint tortfeasance to directors. It is argued in this paper that this latter approach is the correct approach under the law and can be justified as a matter of both principle and policy.