Analyze 4 real cases of directors liability and lessons learned Essay

Analyze 4 real cases of directors liability and lessons learned - raise ExampleHere, the director was liable for failing to act as stated in the associations statutes. He, therefore, was responsible for breach of barter of diligence.The second case is about Limited v. Burns. The director was found inculpative of running the company headyly. The iniquitous verdict came as a result of finding the director guilty of the offense. The judge decided that the duty of care was clearly violated by the director. He was, therefore, liable for failing to act in the companys statutes. He did not put into consideration the act of impregnable faith while dealing with the companys affairs (Webster 46). There were certain risks that were apparent except the director knew this, but still went ahead and did these transactions.In the third case, the director was found liable for acting under fraudulent means. Fraud can lead to serving a jail term (Webster 58). This was in the case of Lexi Hold ings v. Said Luqman and Others1. Luqman used fraudulent means to acquire money from the company that had entrusted him with the task of stipendiary in receipts to one bank account. He, however, transacted money to some other bank accounts that belonged to him, and some of his associates. He was liable for breaching the trust bestowed on him by the company. After being caught, he failed to disclose all his assets for veneration of being arrested and jailed for fraud. This led the court to find him in contempt of court. He was jailed for 18 months since he had acted outside the duty of obedience.The fourth case is identified as a breach of duty of care or diligence. This is in the case of Cellar House Limited. The director was fully responsible for reckless trading. He was found to be guilty of other breaches as well, for example, breach of loyalty. He was responsible for having the company in debt, and was forced by the court to pay over 1.7 million dollars. The activities that he conducted for the company were illegitimate. He did these transactions