Legal news and trends for Canadian in-house counsel and c-suite executives
Issue link: https://digital.canadianlawyermag.com/i/50890
ENVIRONMENTAL LAW QUIZ H 1 2 3 ow much do you know about environmental law? Test your knowledge with this quiz authored by John Buhlman, partner at WeirFoulds LLP. You have been asked to be a nominal director of your company, which is a wholly owned subsidiary of a foreign company, because the company needs a minimum number of Canadian resident directors. You think this is a great opportunity and are assured that even though the company has manufacturing facilities in Ontario, you need not be concerned with environmental liabilities since you will only be a nominal director. Are the assurances you received correct? Yes or No? The general counsel of the foreign parent company of your employer, a Canadian company operating in Ontario, gives general counsel in Canada the bad news that the Canadian company is being closed because it is not making any money and that there will be a large environmental liability. General counsel asks you if there is any liability on the parent company for the environmental liability. Your answer is: a) Yes, absolutely. b) No, absolutely not. c) Yes, at least probably. d) No, probably not. A director of the foreign parent company of your Canadian employer asks you whether she has any personal liability for the environmental liability of the Canadian company. Your answer is: a) Yes, absolutely. b) No, absolutely not. c) Yes, at least probably. d) No, probably not. C ANADIAN Lawyer INHOUSE A UGUST 2008 29 4 5 You are asked to be a director of a Canadian company that has a manufacturing facility and therefore potential environmental liabilities. What should you do to protect yourself? a) Don't worry, be happy. b) Obtain oral assurances that the company will protect you. c) Obtain a written indemnity from the company. d) Obtain a written indemnity from both the Canadian company and the foreign parent. e) Have the company obtain insurance that includes indemnity for you in the case of environmental liability. f) b & c. g) d & e. You are a director of a Canadian company doing business in Ontario. The board meetings are fairly perfunctory and environmental issues are never on the agenda. You need not worry about this. True or False? See answers on page 30