When Personal Responsibility Kicks In

While companies are separate legal entities, directors can be personally liable if they:

• Act negligently or recklessly;
• Breach their fiduciary duties;
• Allow the company to trade while insolvent;
• Commit fraud or misuse company funds.
  Directors must always act in the best interests of the company and follow legal and ethical standards. Failure to do so can result in claims against them personally — not just the business.