Kent Solicitors

There are many ways a director can be held personally responsible and here is an illustration of one of those ways from a recent case

A company placed an order for goods. The director who signed knew (or should have known) that the company was insolvent and would not be able to pay for those goods

It was decided that an agreement signed by a director on behalf of a company contained an implied representation that the company had the capacity to meet its obligations and the director was personally liable for deceit since he knew that representation was untrue.

Labels: Company director personal liability insolvent misrepresentation deceit