The corporate veil's limited protection!
As a rule, directors can be held responsible for the company’s debts, including government debts or debts related to salaries and vacation pay. Government recourse is generally exercised after the bankruptcy 
is declared or operations cease.
Note! Resigning shortly before a bankruptcy will not release a director from this responsibilities, since the prescribed timeframe is 2 years from the time the director has ceased to act in this capacity.
For their protection, during their mandate, company directors should do the following:
- Take out a company director’s liability insurance policy.
- At every meeting of the board of directors, obtain written confirmation from management that government remittance payments have been made.
For more information, speak to an expert on our team.
