Liability for Shareholders and Directors of Limited Liability Companies, for CSR-Related Breaches

If a limited liability company does not comply with its obligations, the directors and the shareholders of the company can be held liable on further terms under Norwegian law. Such liability can be based on section 17-1 of the Limited Liability Company Act, and the shareholders can additionally be h...

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Main Author: Margrethe Buskerud Christoffersen
Format: Article
Language:English
Published: Scandinavian University Press 2024-02-01
Series:Oslo Law Review
Subjects:
Online Access:https://www.idunn.no/doi/10.18261/olr.10.2.6
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author Margrethe Buskerud Christoffersen
author_facet Margrethe Buskerud Christoffersen
author_sort Margrethe Buskerud Christoffersen
collection DOAJ
description If a limited liability company does not comply with its obligations, the directors and the shareholders of the company can be held liable on further terms under Norwegian law. Such liability can be based on section 17-1 of the Limited Liability Company Act, and the shareholders can additionally be held liable based on the doctrine of piercing the corporate veil. There are several statutes that impose obligations on companies related to human rights, climate and the environment, and if directors or shareholders have acted negligently, they can be held liable for third partiesʼ loss suffered as a result of the companyʼs lack of fulfilment of its obligations. The directors may also be liable for compensatory losses suffered as a result of failure to safeguard the companyʼs interests. Societal interests are part of the companyʼs interest, but there are no examples in Norwegian law of board members being held liable for failure to safeguard such interests.
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spelling doaj-art-58e2374fb6cd4c68b0c9d3a3d11685c32025-08-20T01:56:57ZengScandinavian University PressOslo Law Review2387-32992024-02-011021710.18261/olr.10.2.6Liability for Shareholders and Directors of Limited Liability Companies, for CSR-Related BreachesMargrethe Buskerud Christoffersen0Department of Private Law, Faculty of Law, University of OsloIf a limited liability company does not comply with its obligations, the directors and the shareholders of the company can be held liable on further terms under Norwegian law. Such liability can be based on section 17-1 of the Limited Liability Company Act, and the shareholders can additionally be held liable based on the doctrine of piercing the corporate veil. There are several statutes that impose obligations on companies related to human rights, climate and the environment, and if directors or shareholders have acted negligently, they can be held liable for third partiesʼ loss suffered as a result of the companyʼs lack of fulfilment of its obligations. The directors may also be liable for compensatory losses suffered as a result of failure to safeguard the companyʼs interests. Societal interests are part of the companyʼs interest, but there are no examples in Norwegian law of board members being held liable for failure to safeguard such interests.https://www.idunn.no/doi/10.18261/olr.10.2.6CSRliability for directors and shareholderspiercing the corporate veilcompany interestproposed EU Directive on corporate sustainability due diligence
spellingShingle Margrethe Buskerud Christoffersen
Liability for Shareholders and Directors of Limited Liability Companies, for CSR-Related Breaches
Oslo Law Review
CSR
liability for directors and shareholders
piercing the corporate veil
company interest
proposed EU Directive on corporate sustainability due diligence
title Liability for Shareholders and Directors of Limited Liability Companies, for CSR-Related Breaches
title_full Liability for Shareholders and Directors of Limited Liability Companies, for CSR-Related Breaches
title_fullStr Liability for Shareholders and Directors of Limited Liability Companies, for CSR-Related Breaches
title_full_unstemmed Liability for Shareholders and Directors of Limited Liability Companies, for CSR-Related Breaches
title_short Liability for Shareholders and Directors of Limited Liability Companies, for CSR-Related Breaches
title_sort liability for shareholders and directors of limited liability companies for csr related breaches
topic CSR
liability for directors and shareholders
piercing the corporate veil
company interest
proposed EU Directive on corporate sustainability due diligence
url https://www.idunn.no/doi/10.18261/olr.10.2.6
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