What Personal Liability do you have?
The director and company are two separate and distinct entities.
Generally speaking the director will not be liable for the debts of the company unless the following has occurred:-
- Director has signed a personal guarantee for the debt.
- Director failed to remedy a Directors Penalty Notice.
- The Director has failed to lodge his BAS within three months of their due date.
Additionally, it is the liquidators job to look at the transactions of the company and determine whether a claim should be made against the director for:-
- Insolvent Trading
- Unreasonable Director Related Transactions
- Preference payments (repayments of director loan accounts)
Often times a Liquidator or pre insolvency person won’t tell you about these issues before signing you up and then three months later hitting you with an enormous claim.
Contact us at Taylor Insolvency to talk about the best steps for you and your company to obtain a fresh clean break for a confidential, obligation free chat on (02) 8488 3126.