Legislator Case Law & Legislation
KKO 2306/2001 AI generated

Supreme Court dismissed claim against bank executives for loan losses, ruling liability requires direct fault or breach of duty.

Case Number KKO 2306/2001
Court / Authority
Jurisdiction Finland (FI)
Decision Date
Outcome Dismissed

Legislator summary

AI generated

The Supreme Court dismissed the plaintiff's claim seeking compensation from the savings bank's board members and managing director for losses incurred from a loan. The plaintiff argued that the executives failed in their supervisory duties, while the defendants contended they acted within their professional obligations and without personal fault. The court held that liability for corporate losses rests with the company itself unless specific personal fault or breach of statutory duty is proven by the claimant.

Legislator headnote

AI generated

S. 10 of the Companies Act 1961; s. 1 of the Liability Act 1961: Directors and officers are not personally liable for corporate losses unless they have committed a specific tort or breached a statutory duty owed to the company.

Keywords

AI generated
corporate liability directors duty banking law personal fault supreme court

Cited Legislation

AI generated
S. 10 of the Companies Act 1961
s. 1 of the Liability Act 1961
AI generated

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Full text

Kysymys säästöpankin hallituksen jäsenten ja valtuutettuna toimineen toimitusjohtajan korvausvastuusta pankille luotonannosta aiheutuneista vahingoista sekä korvauksen sovittelusta.