If a decision concerning the compensation of directors were challenged by a board, the board would be liable for that decision. It is possible, in an insolvency case, that the monitor might decide the decision runs counter to expectations regarding the board's liability.
That creates a
tort law liability that can be pursued against those individual directors.
One of the defences for tort law liability is due diligence. That particular director, for instance, if they had opposed the executive compensation may, however, be able to rely upon that defence in the tort law action against them.
The board of directors is liable for that decision. If the monitor states that the decision runs counter to expectations or to the aims of the act, that creates a liability for the entire board. Several means of defence are possible. This isn't a
summary action.
This isn't a decision that's up to the court at that point, but the entire board of directors may then be liable.