Abstract:
This work explores a number of the important aspects of the Liabilities of Directors specifically under the Rwandan Law. It should however be noted that the aspect of Liability of Directors is a sub division of corporate governance and, in particular, it examines the role of directors ‘duties in corporate governance and later analyses the legal implications behind duties of Company officers but specifically the directors. Directors are obliged to carry out the duties established by the law and by the by-laws with the appropriate care depending of the kind of task and on their specific skills and competences. In that regard directors are jointly and severally liable to the company for damages caused by the failure to comply with their duties.
Notably liabilities of directors vary from country to country mainly due to the divergence in the socio-economic, political as well as the legal and regulatory determinant related factors prevailing in relation to most jurisdictions or countries. Additionally, most developing countries for example, are identified as having variety of political and economic atmospheric precedes compared to the urbanized states. They are frequently characterized governments owning of companies coupled with a fragile legal and judiciary administration, fragile systems in their institutions, poor human resources competences among such other related companies as a result of such. Additionally, these problems cannot be generalized to fit each country‘s situation but rather particular study of each country would reveal its own particular situation mainly rooted in its socio-economic, political and legal history which now sets this work to the case of Rwanda.
