Personal Liability and Disqualification of Company Directors

Although the law recognizes and vigorously defends the separate legal identity of the corporate entity, legislative provisions have been enacted to protect the interests of corporate creditors whereby in circumstances where the company's affairs have been mismanaged to the extent that the company has become insolvent, the directors themselves may: (a) be subject to liability to contribute to, or in some instances, completely discharge the debts of the company, and (b) for the protection of the public interest be subject to disqualification proceedings under the Company Director Disqualification Act 1986, which, if successful, will prevent them from participation in the future management of a company.