Definition of Statutory liability:
A responsibility imposed on an individual or business by a law. For example, the directors of a corporation assume certain statutory liabilities (legal obligations) when they join the board. A statutory liability is different from a contractual liability, which is a responsibility imposed on an individual or business by a contract.
Statutory liability is a legal term meaning that someone can be held responsible for a specific action or omission because of a related law that is not open to interpretation. This is a generic term that can apply to any field, not just finance. Within the world of finance, it may come up about real estate transactions, stockholder obligations, or the behavior of board member.
In New Zealand and Australia, businesses commonly purchase statutory liability insurance to protect themselves from the fines, penalties, and legal fees that can result from an accidental breach of law. These may include occupational health and safety laws, environmental laws, and employment laws.
Meaning of Statutory liability & Statutory liability Definition