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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.

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...

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