Directors’ liability for debts includes expenses

|Canadian Employment Law Today

Michael Proulx, Fern Schnabel, Jean Bailly, José Codron, Jean-Pierre Rioux and Jean Luc Roy (the employees) were all employed by Sahelian Goldfields Inc. The employees provided their services at the corporation’s mine in West Africa.

Each employee signed a contract with Sahelian, which contained clauses dealing with remuneration and expenses. The clause on expenses provided the corporation would reimburse the employees for “all reasonable and out-of-pocket expenses incurred... in connection with carrying out these duties” when employees were required to travel to various destinations in North America, Europe and Africa.

Unfortunately, Sahelian was failing financially. The employees ceased working for Sahelian when it failed to pay their salaries, vacation pay and incurred expenses such as air fare and food and lodging while at the mine site carrying out their employment duties.