The recent tide of public opinion has turned against the traditional argument that overwhelming directors with personal liabilities could be detrimental to the viability of the business sector. It is felt that directors may feel obliged to insist on a zero‐tolerance approach to risk taking which would stymie economic growth. This chapter considers whether policymakers have found the right balance between these two competing considerations. It argues that there is invariably a significant gap between the law on the books, and the extent to which shareholders, regulators, and courts are willing to enforce sanctions on individual directors. The chapter explores why directors' legal duties and obligations are necessary, and relates this need to the actual legal frameworks of corporations. It assesses if these duties translate into material personal liabilities (financial or criminal) for board members. The business judgment rule makes it extremely difficult to sue directors for bad decisions on the basis of company law.