Advice for Company Directors
Clarke Bell can assist you with any queries you may have regarding your company’s position, or any other personal advice you may require as a company director. We provide a full range of insolvency services and our team are here to make everything clear and understandable during what may be difficult and anxious times for your business.
As a general rule of thumb, directors are not personally liable for the debts of a company. The company itself is responsible for all assets and debts and is regarded as an ‘artificial person’ in law. This is the main reason for launching a limited company in the first place, so that the liability of shareholders and directors is limited. Shareholders are only liable for any unpaid share capital, which is of no real importance.
Directors may be faced with personal guarantees to creditors (banks, landlords, asset finance companies, etc) meaning they will be liable for whatever shortfall a creditor may suffer in the event of liquidation. If there is more than one guarantor on a guarantee, then the one that has the most personal assets stands to lose more.