Is a director personally liable for a payment made by the directors of a company to shareholders in the insurance company?
Saskatchewan, Canada
The following excerpt is from Sask. Co-op. Elevator Co. Ltd. v. G.T.P. Railway Company, 1922 CanLII 119 (SK QB):
Also, see the case of Moxham v. Grant [1899] 1 O.B. 480, 68 L.J.Q.B. 283, the judgment of Lawrance, J., at p. 483: It seems to me that there is no valid answer to the claim. The shareholders knew at the time perfectly well that it was insurance money that they were receiving; and under those circumstances it is not just that the directors, as between themselves and the shareholders, should be held personally liable for the payment in which the shareholders acquiesced and from which they alone benefited.
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