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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?
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.
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