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Act honestly and with care
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Prince Edward Island stands fully covered: its own filings and guidance stand in the books beside the federal ones.
Directors and officers act honestly and in good faith, in the society’s best interests, with the care a reasonable person would show.
Serve the company honestly; a director who does may be indemnified by the company, except where the cost came of the director’s own wilful neglect or default. Binds: Prince Edward Island companies without share capital (Part II of the Companies Act).
The law’s own words
“The directors of the company have full power in all things to administer the affairs of the company, and may make or cause to be made for the company any description of contract which the company may by law enter into.”
Companies Act (Prince Edward Island), s. 28 · Read it at Prince Edward Island · Verified 2026-11-11
“Any director, officer or servant of the company who knowingly makes, or assists in making any untrue entry in any such book, or refuses or neglects to make any proper entry therein, besides any criminal liability which he may thereby incur, is liable in damages for any loss or injury which any person interested may have sustained thereby.”
Companies Act (Prince Edward Island), s. 54 · Read it at Prince Edward Island · Verified 2026-11-08
“Every director of the company … may, with the consent of the company given at any general meeting, be indemnified and saved harmless out of the funds of the company from and against all costs, charges and expenses … in or about the execution of the duties of his office … except such costs, charges and expenses as are occasioned by his own wilful neglect or default.”
Companies Act (Prince Edward Island), s. 64 · Read it at Prince Edward Island · Verified 2026-11-08
Companies Act (Prince Edward Island), sections 28 and 64
“The directors of the company have full power in all things to administer the affairs of the company, and may make or cause to be made for the company any description of contract which the company may by law enter into.” “Every director of the company … may, with the consent of the company given at any general meeting, be indemnified and saved harmless out of the funds of the company from and against all costs, charges and expenses … in or about the execution of the duties of his office … except such costs, charges and expenses as are occasioned by his own wilful neglect or default.”
Source: Companies Act (Prince Edward Island), ss. 28, 64 · Checked 2026-11-11