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JGM, Solicitor
Category: Law
Satisfied Customers: 12088
Experience:  30 years as a practising solicitor.
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I have recently resigned as a director related

Customer Question

Hi, I have recently resigned as a director for two related companies. I'd like to know what might happen to me if they declare bankruptcy - would there be any personal liability and what other issues might be involved - eg -ve effect on personal credit rating etc, effect on future directorships etc
Submitted: 2 years ago.
Category: Law
Expert:  JGM replied 2 years ago.
A director of a company is not usually responsible for the company's debts if the company goes into liquidation or other insolvency. There are only two scenarios where that might not be the case: (1) the director has granted a personal guarantee for a liability of the company (2) the director has been involved in the illegal transfer of assets to the prejudice of the company's creditors, in which case the liquidator could pursue the director personally. Happy to discuss further. I hope that helps. Please leave a positive rating so that I am credited for my time.
Expert:  JGM replied 2 years ago.
Let me know if I can help you further with this. Can you also remember to leave a positive feedback on the system so that the site credits me for my time. Thanks for using JustAnswer.