Directors – When Are They Personally Liable?
“… for the benefit of immunity from liability for its debts, those running the corporation may not use its formal identity to incur obligations recklessly, grossly negligently or fraudulently. If they do, they risk being made personally liable.” (Quoted in the judgment below) Particularly in hard times, it is not at all uncommon to find […]
Directors, Creditors – Do Personal Suretyships Survive Business Rescue?
“Creditors have better memories than debtors” (Benjamin Franklin) In these hard times of pandemic and economically destructive unrest, an unfortunate number of businesses face collapse, and many will opt for the “first aid for companies” option of business rescue. Creditors coming out of that process with a shortfall (only the luckiest creditors are likely to […]
When Company Directors and Shareholders Come to Blows…
What happens when a company’s directors and shareholders fall out and cannot reconcile their differences? “Relief from oppressive or prejudicial conduct” If you should find yourself in such an unfortunate situation, our Companies Act offers you several possible remedies. Professional advice specific to your case is essential here but be aware of a particularly versatile […]