Is a sole director of a corporation an inside director?
Canada (Federal), Canada
The following excerpt is from Verret v. The Queen, 2008 TCC 240 (CanLII):
On the issue of whether a sole director is inevitably an inside director, Mr. Justice Hershfield in Sziklai v. the Queen, 2006 DTC 2798, determined that whether or not one is an inside director depends on one’s degree of involvement in, and knowledge of, the daily operations of the business. His analysis on the subject is a reminder that the degree of a director’s involvement in the business is the backdrop to the application of the standard in determining what a reasonably prudent person would have done in the circumstances.
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