director of limited corporation

Posted on Monday, January 15, 2007

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If a limited company filed for bankruptcy in Alberta, are the directors personal assets affected by this?

Filed under: Bankruptcy
 posted by Questions @ 10:23 am
1 Expert Comment:

 At January 17, 2007 | 12:28 pm , Barton Goth, GCO Inc. Bankruptcy Trustees Said...

As directors of a limited company you are only eligible for certain types of debts of the corporation. The most common ones include:
a) GST arrears outstanding to Canada Revenue Agency;
b) Any payroll remittances that were withheld from employees pay cheques but not remitted to Canada Revenue Agency; and
c) Any personal guarantees you may have signed.

These are the normal types of debts as directors you need to be concerned with. Of course if you misrepresented things in the daily course of business you may be liable for damages, but this is more unusual.

Typically speaking if you don’t have any of the above 3 items you need not be concerned.

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