Analysis of Directors’ Liability in Ireland

In a landmark decision, the Irish High Court recently held directors and shadow directors personally liable for funds misappropriated by a company as part of a fraudulent investment scheme worth €186 million.  This represents the first time that an Irish court has pierced the corporate veil to hold directors personally liable, notwithstanding the well-established company law principle that a company has a separate legal personality to its members and directors.  The judgment serves as a stark reminder of the importance of directors’ duties and, in particular, the potential consequences for their dereliction by passive directors.