3.5.1.3 Contextual legal case factors

The research results in Table 7 further demonstrate that case factors of ‘mismanagement’ (Wald = 8.226) and ‘misrepresentation of information’ (Wald = 8.576) yield a significant effect (sig. < 0.05) but contribute less to case outcome compared to the other factors in the model. The finding suggests that courts seek to distinguish company liability from the personal liability of the director concerned. Nevertheless, when ‘misrepresentation of information’ occurs in a hypothetical case and other factors do not occur, it yields a 73% chance of a director being found liable.

Finally, the observation that ‘dereliction of duty’ was not a significant factor may be explained by the fact that the frequency of this factor in the cases subjected to analysis was very low.