Proportionate Liability under the CBCA in the Context of Recent Corporate Governance Reform: Canadian Auditors in the Wrong Place at the Wrong Time?

Authors

Poonam Puri, Osgoode Hall Law School of York UniversityFollow
Stephanie Ben-Ishai, Osgoode Hall Law School of York UniversityFollow

Document Type

Book Chapter

Publication Date

2004

Source Publication

Corporate Governance and Securities Regulation in the 21st Century. Toronto, ON: LexisNexis Butterworths, 2004.

Keywords

Auditors--Legal status, laws, etc.; Liability (Law); Canada

Abstract

In the recent Canada Business Corporations Act' amendments implementing a proportionate liability scheme, auditors appear to be winners. This is consistent with the trend in the past several years as a result of which Canadian auditors have been successful in narrowing the scope of their liability both through legislation and through common law. Going forward, however, it is fair to say that auditors will be losers unless the accounting profession re-evaluates its role and responsibilities to its stakeholders. Given the accounting and corporate governance scandals North America has witnessed in the past few years, as well as the actual and anticipated regulatory response in Canada, the scope of auditor liability is bound to expand once again.

Repository Citation

Puri, Poonam and Stephanie Ben-Ishai. "Proportionate Liability under the CBCA in the Context of Recent Corporate Governance Reform: Canadian Auditors in the Wrong Place at the Wrong Time?" Puri, Poonam, and Jeffrey Larsen, eds. Corporate Governance and Securities Regulation in the 21st Century. Toronto: LexisNexis Canada Inc., 2004. ISBN: 0433442921

Creative Commons License

This work is licensed under a Creative Commons Attribution-Noncommercial-No Derivative Works 4.0 License.