Risk Management Considerations for Directors' and Officers' Liability

A private boarding school tailored to students with learning disabilities and behavioural issues closed their doors in November of 2013. Parents of the students were notified of the immediate school closure by an email which provided less than 24 hours' notice that they were to have their children removed from the premises. The principle and CEO of the school informed parents that the sudden and immediate closure was due to low enrollment. Parents were left wondering why controls were not in place to prevent this from happening and whether they would receive a refund on the annual tuition that had already been paid.