Home Business News Company directors are unaware they are responsible for debt

Company directors are unaware they are responsible for debt

by LLB Reporter
30th Jul 19 12:05 pm

A large number of company directors will be relaxing at home tonight, completely unaware that they are personally responsible for the debts of their companies.

Many company directors have unknowingly provided personal guarantees to suppliers and service providers around the UK, covering a wide range of commercial sectors such as the building trade and even legal advice.

In many cases, those signing documentation on behalf of a company are being casually led into doing so, without being made aware of their personal liability contained within the wording.

Gerard Boyle, Founder of Crowd-Law in the UK said, “Everyone should, of course, read the small print carefully when ordering on behalf of their limited company, certain goods or services.

“However, we believe that those supplying the goods or services have also a moral responsibility of drawing this important clause to the director’s attention, prior to obtaining a signature.”

He added, “With the new Prime Minister now fully in place, we will be making contact with the new Business Secretary to highlight this important issue and, we will certainly be including this subject on our forthcoming television series, later this year.”

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