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directors liability

directors liability

Postby jantra » Tue Oct 11, 2016 5:15 pm

if a director signs a lease and he knows the company doesnt yet have the finance to pay the lease, and it transpires that finance could not be sought, is the director liable for the lease or any losses incurred as a result of non performance?
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Re: directors liability

Postby atticus » Tue Oct 11, 2016 6:04 pm

Possibly. Wrongful trading may kick in.

Dls - do you have a resource on a case from about 2006-2008 called something like Contex Drouzhba? That shows how a company director may have such a liability, but I think there may be more to it on the facts of that case.
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Re: directors liability

Postby atticus » Tue Oct 11, 2016 6:08 pm

http://swarb.co.uk/contex-drouzhba-ltd- ... -nov-2007/

He does! And may I say how impressed I am with my memory of the name of this case?
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Re: directors liability

Postby jantra » Tue Oct 11, 2016 6:28 pm

splendid memory- thanks atticus

how does this impact other directors if they object to the contract being signed?
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Re: directors liability

Postby atticus » Tue Oct 11, 2016 8:14 pm

That case concerned the director who had signed.
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