Directors Warning!

As a director, do you know the risks surrounding your personal liability? 

It is a well-known principle that a limited company is a separate legal entity and distinct from its directors or shareholders. As such, the company will normally be treated as solely responsible for the debt it incurs and the obligations it enters into. 

This article will highlights some of the main ways in which a director may find himself personally liable for the debts and obligations of his company, in particular the principle outlined in the case of Contex Drouzhba Ltd v Wiseman [2007].