Content
After U, Gordon?
Ups And Downs
Gift Horse
What A Relief!
Second Thoughts?
Last One Out...
Penalty Shoot-Out
Ain't Necessarily So
Going, Going, Gone
Papers In Order?
Death And Taxes
Passing The Buck
Hire Higher
Back Taxes, Taxes Back
Options Open
Extortion?
Sick Note
Cats And Dogs
Old-Fashioned Money
I Thee Endow?
Mother's Rights
Countdown
Nowhere To Hide
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Doing business through a limited company is supposed to protect you financially when things go wrong. The company goes bust but you don't. That's the theory, but it has limitations. Lenders and landlords often take personal guarantees from the directors or shareholders; and the law doesn't look kindly on people who risk other people's money from the safety of their company. In a recent case, a director signed a contract committing his company to pay for goods when he knew the company was insolvent. One judge said he could be sued for damages on the grounds of deceit, but the Court of Appeal ruled that he was personally liable on the contracts. He knew what he was doing and he knew that it was wrong, and he could not walk away. It's a reminder that directors need to think realistically about their company's ability to pay, and to make sure they have up-to-date and reliable information to help them make good decisions. |
© Bayar Hughes & Co., 2010.