At law, a company is a separate and distinct legal entity from its owners and controllers. As such, the company is responsible for the payment of its debts.
A director has no personal liability for company debt however, the protection of a company structure is often signed away to suppliers who insist on a personal guarantee before agreeing to provide goods or services on credit.
Personal Liability for Company Debt
Posted by davidtrounce under FinanceFrom http://insolvencyexperts.com.au 3523 days ago
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