Can directors of a company be found guilty of fraud?
Alberta, Canada
The following excerpt is from Hardie v. Trans-Canada Resources Ltd., 1976 ALTASCAD 206 (CanLII):
In Cox and Paton v. The Queen both the accused became directors of the company it was alleged they defrauded. They argued that as directors they constituted the 'mind of the company' - and as they were fully aware of the true facts it could not be said that acting in that capacity they had been deceived. If they, as directors, had not been deceived then there could be no deceit on the company. This case is simply authority for the proposition that that contention is without merit and validity. The directors could not be heard to say that there had been no fraud in those circumstances.
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