The following stakeholders could hold the directors and offers of the company liable for bad decisions:
- Shareholders, if the results of the business and hence the dividends or value of shares drop.
- Creditors, if they are not paid.
- Employees, if they were to lose their jobs.
- Customers who are seriously prejudiced when the company no longer provides supplies vital to the customer’s business.
- Suppliers, especially those who incurred considerable expense to supply the company.
- The company itself – in the form of a derivative action
- State authorities, who could bring criminal charges for negligently failing to take the required steps to prevent accidents, injuries, damage or harm to the environment.
- Other parties who believe they have suffered a loss as a result of negligence.
Directors and Officers Liability