You are here

When are directors personally liable for corporate debt?

If directors do not ensure that the separate legal personality of a company is not abused and used to evade the law, they risk facing personal liability for the company's obligations.
Monday, July 4, 2016 - 05:50

A KEY reason that companies are the preferred form to conduct business is that the personal assets of its shareholders and directors are shielded from creditors in the event of a company's insolvency.

This is because the company is treated as a separate legal entity from its directors and

sentifi.com

Market voices on:

Nespresso
Pair your daily business read with the perfect cup of espresso.

Subscribe to The Business Times today to receive your very own Nespresso Inissia coffee machine worth $188.

Find out more at btsub.sg/btdeal

Powered by GET.comGetCom