fbpx
Skip to content

What personal liability do I have as director of my company?

A director of a company can be made personally liable if the company becomes ‘insolvent’ or has incurred a significant amount of debt, and if a court can prove that there has been ‘wrongful trading’ on the part of the director.

This involves finding out whether the director had reasonable knowledge of the company’s financial shortcomings and the unlikelihood of avoiding insolvent liquidation. If they did not take steps to minimise the loss to creditors they may be found of wrongful trading and be personally liable for losses.

Directors of companies are bound by the Corporations Act 2001. For a full list of director duties and potential breaches see our article.

Register for our free webinars

23
Nov

Understanding Your Franchise Compliance Obligations

Online
As a franchisor, you risk penalties and franchisee claims if you are not legally compliant. Register for our free webinar today.
Register
30
Nov

How Founders Can Succeed in the Startup Ecosystem

Online
As a founder, learn how to navigate the startup ecosystem. Register for our free webinar today.
Register
5
Dec

Preventing Wage Underpayment In Your Business

Online
Avoid negative headlines and penalties by ensuring you correctly pay your employees. Register for our free webinar today.
Register
7
Dec

Construction Security of Payment Claims: Your Rights

Online
Learn how to make a claim under SOPA. Register for our free webinar today.
Register
See more webinars >
Lachlan McKnight

Lachlan McKnight

CEO

Lachlan is the CEO of LegalVision. He co-founded LegalVision in 2012 with the goal of providing high quality, cost effective legal services at scale to both SMEs and large corporates.

Qualifications: Lachlan has an MBA from INSEAD and is admitted to the Supreme Court of England and Wales and the Supreme Court of New South Wales.

Read all articles by Lachlan

About LegalVision

LegalVision is an innovative commercial law firm that provides businesses with affordable, unlimited and ongoing legal assistance through our membership. We operate in Australia, the United Kingdom and New Zealand.

Learn more

Read other articles by Lachlan

We’re an award-winning law firm

  • Award

    2023 Fast Firms - Australasian Lawyer

  • Award

    2022 Law Firm of the Year - Australasian Law Awards

  • Award

    2021 Law Firm of the Year - Australasian Law Awards

  • Award

    2020 Excellence in Technology & Innovation Finalist - Australasian Law Awards

  • Award

    2020 Employer of Choice Winner - Australasian Lawyer