As our analysis indicates, the LCO is not satisfied that substituting another regime of liability for that of joint and several liability under the OBCA is warranted. Furthermore, there already exist mechanisms, such as contractual caps and self-insurance, and potential mechanisms such as contractual caps relevant to shareholder claims, financial statement insurance and catastrophic bond securitization that can address at least some of the concerns raised about the application of joint and several liability to professional advisors.
The LCO therefore recommends that:
The principle of joint and several liability continue to operate for offering OBCA corporations.
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