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:

When the Land Register Fails: High Court Clarifies State Indemnity for Lenders Relying on Official Land Records

Article By Z.O.G Introduction The integrity and reliability of Kenya's land registration system are central to the functioning of th...