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A company in financial difficulty may have repercussions for its directors and their personal finances. Fortunately, the law provides measures to protect directors and reduce their liability in commercial bankruptcy.
If you would like to learn about the rights and responsibilities of company directors, an insolvency professional can inform you and suggest solutions. The situation will become clearer and you will become less stressed.
As the director of a company, you must assume a number of legal and contractual liabilities. Given the financial difficulties of the company, you may be required to honour certain fiscal responsibilities.
If your company declares bankruptcy, directors’ liabilities may include repayment of the following liabilities:
Taxes (GST, QST)
Loans, margins, credit cards, and new accounts, if personally guaranteed.
∞ The Commission des normes, de l’équité, de la santé et de la sécurité du travail (CNESST) (Quebec only).
The following recommendations are addressed to all company directors, regardless of the size of their company. They will contribute to your protection and will help you fulfill your responsibilities as a director.
In general, it is best to ensure that you :
Being at the head of a company that experiences serious financial problems is no walk in the park. The knowledge that these problems could have repercussions on your personal finances or on your family is even harder to bear. Depending on which solution you choose, there are ways, fortunately, to reduce your liability and protect your family from the repercussions.
Trustees and directors at Ginsberg Gingras are knowledgeable in all aspects of the laws governing insolvency and understand director liability. Don’t wait until it’s too late. If you are experiencing financial difficulties, contact Ginsberg Gingras immediately for a rapid response. Fill out the form below to schedule a meeting or to ask us questions.
At any time, they are available to answer your questions and help you make the right decision.
Fill out our quick financial analysis form or the appointment form that follows for a consultation.
We will reply within 24 hours or on the next business day.