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When is a director personally liable for company debts?

 

In this topic will give you everything you need to know about the liability of a company director for reckless trading.  It is an important topic, because many people think that the limited liability of the company protects the Directors absolutely against any claim that a creditor might have in the future.    That is not the case.

 

In general, the limited liability the company does mean that the Directors are protected in the normal course of their actions as Directors.  If the company goes bust creditors are not able to sue the Directors except in special circumstances.

 

We will outline the special circumstances as well as give you details of a High Court decision as late as 2004 which sets out the application of the specific rules.

 

The two sections to look at in the Companies Act 1993 are sections 135 an

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"I found all this Company Law stuff really helpful. Not too academic but enough to get a really good grounding in some of the pitfalls. You need to read all the company topics to get a handle on this huge area. Anthony - Christchurch - April 2007"
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"I found all this Company Law stuff really helpful. Not too academic but enough to get a really good grounding in some of the pitfalls. You need to read all the company topics to get a handle on this huge area. Anthony - Christchurch - April 2007"
Feedback/Blogs/Reviews from related topic: Civil Law and Claims
"I found all this Company Law stuff really helpful. Not too academic but enough to get a really good grounding in some of the pitfalls. You need to read all the company topics to get a handle on this huge area. Anthony - Christchurch - April 2007"
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