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Ben Jones
Ben Jones, UK Lawyer
Category: Law
Satisfied Customers: 71328
Experience:  Qualified Solicitor
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I have been asked to join the board of a private limited

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I have been asked to join the board of a private limited company. I know the company is currently defending an unfair dismissal claim at employment tribunal. Is there a danger I might find myself personally liable for fallout from the tribunal case should it go against the company?
JA: Was the forced resignation discussed with a manager or HR? Or with a lawyer?
Customer: With a lawyer.
JA: Does the workplace operate with employees, freelancers, consultants, contractors or with unionised employees?
Customer: Yes.
JA: Anything else you want the Lawyer to know before I connect you?
Customer: Yes. The employee was dismissed after admitting to working (unpaid) for a competitor organisation while absent without leave, contrary to a clause in their contract which explicitly forbade such work.

Hello, I’m Ben. It’s my pleasure to assist you today. I may also ask for some preliminary information to help me determine the legal position.

Are you joining as a director?

Customer: replied 13 days ago.

Thank you very much for clarifying. There should be no fallout from this, even if the employee is successful. First of all, their claim is against the company and as a Limited company it is treated as its own legal entity. It means it is separately responsible and liable for what happened and its directors will not have personal liability for its debts.

Secondly, you were not there during the material time the issues that led to the claim occurred so you cannot be drawn into it and accused of a dereliction of fiduciary duties or anything similar.

So there aren’t really any risks involved in this, unless something extraordinary happens where the company has an astronomical bill to pay as a result of this and they become insolvent, meaning that you cannot continue as a director if the company closes, but that still does not mean you have personal liability over its debts or other liabilities.

Hopefully, I have answered your query in a way that is simple and easy to understand. If anything remains unclear, I will be more than happy to clarify it for you. In the meantime, thank you once again for using our services.

Ben Jones and other Law Specialists are ready to help you
Customer: replied 13 days ago.
That is very clear and most helpful. Thank you very much indeed.

You are most welcome. If you have any further questions about this then please do not hesitate to get back to me and I will be glad to help. All the best