PERSONAL LIABILITY OF DIRECTORS
01 06 2006
In the Autumn 2006 edition we considered the exposure by directors to personal liability arising out of Section 222AOE Notices under the Income Tax Assessment Act (or more commonly referred to as Director’s Penalty Notices.
Some other means by which a director may have personally liability arising from a winding up of a corporation are (not an exhaustive list):
- Section 197 of the Corporations Act - Directors liable for debts and other obligations incurred by a corporation as Trustee;
- Section 588M of the Corporations Act - Director liable for debts incurred through insolvent trading;
- Section 588FGA of the Corporations Act - Director to indemnify Commissioner of Taxation if certain payments set aside by Liquidator;
- personal guarantees; and
- director’s loan accounts.