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Jenny, Solicitor
Category: Law
Satisfied Customers: 6466
Experience:  Qualified Solicitor specialising in Employment Law and general legal matters. Please start your question For Jenny Only
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if the company lm a director in is wind up, as a director

Customer Question

if the company l'm a director in is wind up, as a director am l liable for anything
Submitted: 5 years ago.
Category: Law
Expert:  Jenny replied 5 years ago.
Hello and welcome to Just Answer, as a Director you are a separate legal entitly from the company so therefore any debts owed by the company are owed by the company and not by you personnally.

There are exeptions to this however. Sometimes a director is required to give a personal guarantee. If you have been asked to do this then you can be personnally liable for the debt.

Also there can be personal liability in the case of wrongful or fraudulent trading, this is where a director is found to have traded with intention of defrauding creditors or traded knowing or when they reasonably ought to have known that the company would go into adminstration. These are covered by the Companies Act 2006.

Rarely a director may be sued where he is considered to have contracted as an Agent of a company, this is where a director has been negligent to a third party.

Finally there can be some personal liability in respect of tax returns if the returning officer has been dishonest in their returns.

So in the absence of any of the above exceptions you should not have any difficulties. If you would like any further assistance please let me know.

If i have fully answered your question I would be grateful if you would give my answer a positive rating. I will be happy to answer your follow on questions.