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Can directors be personally liable for a company’s debts ...

Can directors be personally liable for a company’s debts? One of the great advantages of trading through a company is to take advantage of ‘limited liability’. This means that, unless you have personally guaranteed a liability – for example to a bank or landlord – then as a director you are not responsible for the company’s debts if it goes bust.…

Personal liability for directors Russell-Cooke

It is a fundamental principle of English company law and modern commerce that a limited company is a separate and distinct entity from its shareholders and directors. A company will normally be treated as solely responsible for the debts it incurs and the obligations which it enters into, notwithstanding that it requires individuals (generally the directors of the company) to act as its agents and enter into ……

Company Law Club // Limited liability

Limited liability The basis of limited liability is that all debts incurred by a company are the company's liabilities and are not directly the legal liabilities of the shareholders or of the directors of the company. The company is a separate legal person from its shareholders and the directors.…