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Their potential liability could be hundreds of millions of dollars.
Nonexecutive directors in Australia bear significant personal responsibility for what happens to a company, though their potential liability is not as great as that of executive directors.
Corporations have long complained about their potential liability, especially because the Justice Department has ramped up prosecutions of business crime over the last 20 years.
Yet I can't help but think that Mr. Galliano's problems were not sufficiently addressed, nor their potential liability faced, and that something like a status quo existed.
For years regulators have being sending ambiguous signals to banks about their potential liability for fraud, money laundering, or terrorist-finance claims.
We note that the trend has been toward private equity sellers increasingly relying on representations and warranties insurance to cover their potential liability for breaches of representations and warranties.
Similar(45)
As a result, NBC was able to turn the Beijing Games with all their potential liabilities — time differences, pollution and potential political upheaval — into a triumph for the network.
Mr. Smarr cites a report from the nonpartisan Congressional Budget Office that malpractice premiums could be 30percentt lower under the plan, if factors including reduced investment income, the need to replenish depleted reserves and the higher cost of having other insurers take on some of their potential liabilities, called reinsurance, do not diminish those gains.
Existing guidance (FASB Interpretation 14) requires companies to estimate the range of their potential liabilities associated with a claim, but if no single amount within that range is considered more probable than any other amount within the range, it instructs them to record the low end of the range (the "known minimum").
But it begs the question of whether or not business for profit should even be trusted to undertake efforts of a magnitude that their potential liabilities far exceed their ability to make it right.
For many organisations, their most valuable asset is also their biggest potential liability.
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com