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How do we assess the risk of personal liability for directors arising out of tortious acts?

Abstract

This is well-recognised as a confusing area of the law. This question is still unsettled today even though the first test which attempted to resolve the matter was introduced in 1924. Further tests have developed and a great deal of scrutiny has been given to them all as alternatives to a solution. This article attempts to summarise the origins of the law and then follow its progress in order to propose a way forward that may provide the certainty and predictability that directors must crave to properly assess their personal risk. It will be argued that all tests should not have to stand alone but contribute to a scale of analysis that will find a director either a primary or joint tortfeasor

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