If a director breaches statutory duties, what may happen?

Prepare for the ATT Law Exam. Practice with multiple choice questions, each providing hints and explanations. Be well-prepared for exam day!

When a director breaches statutory duties, the consequences can be both civil and criminal. Civil consequences include liability to pay damages to the company or shareholders, and possible penalties or orders from regulators, such as disqualification from acting as a director for a period. Criminal sanctions come into play if the breach constitutes an offence under company law, which can lead to fines and, in serious cases, imprisonment. Immunity from liability isn’t generally available for breaches, and automatic dismissal with no liability isn’t the normal outcome, while limiting to civil penalties only would ignore the potential for criminal offences.