Sunday, February 9, 2025

When can a director be personally responsible for company debts?

If the director gave a personal guarantee, or continued business knowing staying afloat was impossible, or ran the company dishonestly or illegally. 

Aside from being sued for payment under a guarantee, a director can be sued for fraudulently or wrongfully doing business. 

Therefore, a director must be careful to watch out for fraudulent trading, wrongful trading, and voidable transactions.

No comments:

Parallel Titles, Dissolved Companies and the Anatomy of Land Fraud: Lessons from Williams & Kennedy Ltd v David Kimani Gicharu & Others

Land ownership disputes in Kenya continue to be plagued by competing titles, missing records, and the persistent problem of “parallel regist...