Hi All
If a person takes on a Director position for a company are they liable for any past events (nothing criminal!), if they are told about these or not?
A company requires a Director which is essentially no longer trading but is incurring legal costs due to an on going legal dispute between private owners about the ownership, would a new Director assume some level of liability?
Thanks
Smithie
Replies (7)
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Why would anyone in the circumstances your outline take the risk of being associated if not liable for the problem?
Needs clarification
The current Director is retiring they haven't been connected to any issues and are actually based overseas, the person is looking for someone to take up the position and is happy to agree to any terms to ring fence the incoming Director but I wanted to know if that was even possible..
Thanks
What does the major shareholder want or is that the "person" overseas ?
As the company has ceased trading I can't understand why they need another "dummy" to sit on the board unless they are possibly trying to buck pass to the new person. Whoever he/she is they should seek legal advice ( not from the firm acting in the litigation) before accepting any office
At the very least here should be a full disclosure document and a directors' agreement in
place