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Trust and Loan Companies Act

Version of section 216 from 2006-04-27 to 2024-05-01:


Marginal note:Defence — due diligence

  •  (1) A director, officer or employee of a company is not liable under section 212 or 215 or subsection 494(1) and has fulfilled their duty under subsection 162(2) if they exercised the care, diligence and skill that a reasonably prudent person would have exercised in comparable circumstances, including reliance in good faith on

    • (a) financial statements of the company that were represented to them by an officer of the company or in a written report of the auditor of the company fairly to reflect the financial condition of the company; or

    • (b) a report of a person whose profession lends credibility to a statement made by them.

  • Marginal note:Defence — good faith

    (2) A director or officer of a company has fulfilled their duty under subsection 162(1) if they relied in good faith on

    • (a) financial statements of the company that were represented to them by an officer of the company or in a written report of the auditor of the company fairly to reflect the financial condition of the company; or

    • (b) a report of a person whose profession lends credibility to a statement made by them.

  • 1991, c. 45, s. 216
  • 2001, c. 9, s. 503
  • 2005, c. 54, s. 409

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