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.

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