Watson Farley & Williams’ Post

Exploring ESG and Parent Company Liability 🌍 In their article, Sean Adams, Emma Carr, and Olivia Hookings dissect the dynamic world of tort claims within the #ESG landscape. Read the full article and embark on a journey into ESG and parent company liability 📖🔍 #Sustainability #CorporateGovernance #RiskManagement https://lnkd.in/e2Mi3fmc

Structural sustainability cannot be enforced through liability - Stibbe Structural sustainability cannot be enforced through liability  Stibbe

In any business deal, managing risks is essential. A "Capping of Liability Clause" helps by setting a limit on how much a party has to pay if something goes wrong. This clause is more than just a safety net—it ensures contracts are fair, easy to enforce, and help both sides clearly understand their risks and responsibilities. Our article titled, ‘Significance of the Capping of Liability Clauses in Contracts,’ delves into what these clauses are, why they matter, and the legal principles that govern them. It also offers practical insights into how businesses can use these clauses to balance risks while protecting their financial and reputational interests. Whether you're drafting, negotiating, or simply learning about contracts, this article provides a clear and concise guide to liability capping. #BusinessLaw #LiabilityClause #ContractDrafting #CorporateLaw #ContractNegotiation #CorridaLegal #LawFirm

When it comes to premises liability, knowledge is your best defense. Stay informed about the potential risks, legal responsibilities, and best practices to ensure a secure and thriving business. 📚💼 #BusinessEducation #LiabilityAwareness #WorkplaceSafety #VittatoeConsulting #Consulting #Safety

Did you know that less than 5% of companies choose to operate as unlimited liability entities despite the increased trust and credibility they bring to the business landscape? Re-registering a private company as an unlimited liability company is a bold move that transforms how liability and risk are managed, offering unique advantages for certain industries. If you are considering this path, understanding the legal framework, key requirements, and potential pitfalls is crucial. Dive into this guide to learn everything you need about this significant corporate transition! https://lnkd.in/d2hzKDM8

Mitigate your business risks with expert support. ✅ Legal liability management ✅ Eliminate or share associated risks ✅ Co-employer partnerships for success https://lnkd.in/gVp6mPxn #RiskManagement #BusinessSafety #LiabilityProtection #BusinessSolutions

As a business owner, it's crucial to understand your legal obligations regarding premises liability. Regularly assess your property for potential hazards and take proactive steps to mitigate risks. #PremisesLiabilityAwareness #WorkplaceSafety #VittatoeConsulting #Consulting #Safety

High Court upholds limitation of liability clauses: A recent ruling by the High Court reinforces the importance of carefully crafted limitation of liability clauses in contracts.    This decision highlights the need for businesses to ensure their contracts provide adequate protection against unforeseen circumstances.    Read our article to learn more about the implications for your business. If you have any questions about this decision, or about limitation of liability clauses in your agreements, please contact Duncan McGill or Aaron Sherriff. #liabilityinsights #contracts #highcourtruling

⚠️ Watch Out for Limitation of Liability Clauses! In my years of practice, I’ve come across many contracts where clients were ready to sign without fully understanding the risks hidden in the fine print. Recently, a client handed me a contract that seemed routine, but one clause immediately caught my eye: Clause: ‘The company’s total liability in connection with this agreement, whether in contract, tort, or otherwise, shall not exceed the fees paid by the client for services rendered, and the company shall not be liable for any indirect, consequential, or incidental damages.’ I asked, "Did you realize that if something goes wrong, the most you can recover is the amount you’ve paid them? Even if their mistake costs you much more?" Client: "I had no clue! I thought they’d be fully responsible for any damages." My advice: Limitation of liability clauses are designed to cap how much the other party can be held responsible for—even if their negligence causes significant damage. Always consider negotiating these clauses, especially if your potential loss could far exceed the contract value. Takeaway: Limiting liability sounds fair, but in practice, it could leave you uncovered if something goes wrong. Make sure you fully understand your risks and, where possible, push for a fairer balance in liability. #LegalAdvice #LimitationOfLiability #ContractReview #RiskManagement #ProtectYourBusiness #LawyerLife

Clarity on Directorial Liability: Insights from Recent SCA Ruling In a recent decision, the Supreme Court of Appeal (SCA) clarified the interpretation of directorial liability under the Companies Act 71 of 2008. The case, stemming from an appeal against the KwaZulu-Natal Division of the High Court, Pietermaritzburg, centered on the application of s 218(2) of the Act, which addresses civil liability for contravening provisions of the Act, particularly in relation to reckless trading by a company. The appellant, Venator Africa (Pty) Ltd, sought to hold directors personally liable for damages incurred due to alleged breaches by their company, Siyazi Logistics and Trading (Pty) Ltd. However, the SCA upheld the high court's decision to dismiss the appeal, emphasizing that s 218(2) does not independently establish liability but rather applies in the event of contraventions of other provisions of the Act. The SCA underscored that duties outlined in s 22(1) of the Act are imposed on the company itself, not its directors, while directorial responsibilities are governed by common law principles enshrined in the Act. The court's ruling reaffirmed the distinction between company liability and directorial accountability, highlighting the need for clarity in interpreting statutory provisions to avoid convoluted legal interpretations. This landmark ruling provides valuable guidance on delineating directorial obligations and company liabilities under the Companies Act, fostering a more nuanced understanding of corporate governance and legal responsibilities.