Help

BI’s Article search uses Boolean search capabilities. If you are not familiar with these principles, here are some quick tips.

To search specifically for more than one word, put the search term in quotation marks. For example, “workers compensation”. This will limit your search to that combination of words.

To search for a combination of terms, use quotations and the & symbol. For example, “hurricane” & “loss”.

Login Register Subscribe

Canadian high court dismisses disclosure case

Reprints

OTTAWA--The Supreme Court of Canada has dismissed an appeal of an Ontario Court of Appeal ruling in a securities case that had major implications for the directors and officers' liability insurance market.

The Ontario Court of Appeal ruling in Douglas Kerr vs. Danier Leather Inc. overturned a lower court decision that significantly expanded financial disclosure requirements for Canadian companies and failed to give deference to the business judgment of directors and officers, leaving them vulnerable to lawsuits (BI, Jan. 2, 2006).

In its decision, the Supreme Court ruled that securities legislation limits a company's disclosure obligation to material changes to its business operations, which did not exist in this case.