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Liability Question

  • 01-01-2011 3:43pm
    #1
    mark renton
    Closed Accounts Posts: 2,696 ✭✭✭


    If I am a director (second director with no pay and or profit received, or money invested) of a private limited company and the company is liable for any damages due to loss or damage caused by the company - am I legally at risk for damages?


Comments

  • #2
    Cathal O
    Registered Users, Registered Users 2 Posts: 219 ✭✭Cathal O


    The point of a company is that the liability is limited to the companys money...not directors / shareholders etc. That is the reason for Ltd. bit of a companys name after incorporation. so the public know there is limited liability

    In short the answer is no, you personally should not be at risk of personal liability, just the company itself


  • #3
    GerardKeating
    Registered Users, Registered Users 2 Posts: 7,806 ✭✭✭GerardKeating


    john47832 wrote: »
    If I am a director (second director with no pay and or profit received, or money invested) of a private limited company and the company is liable for any damages due to loss or damage caused by the company - am I legally at risk for damages?

    Not unless you signed any guarantee, or the company traded recklessly and this in some way caused the damages.


  • #4
    MagicSean
    Closed Accounts Posts: 9,897 ✭✭✭MagicSean


    Cathal O wrote: »
    The point of a company is that the liability is limited to the companys money...not directors / shareholders etc. That is the reason for Ltd. bit of a companys name after incorporation. so the public know there is limited liability

    In short the answer is no, you personally should not be at risk of personal liability, just the company itself

    Unless you acted in a criminal or negligent manner which brought about the incident.


  • #5
    Reloc8
    Closed Accounts Posts: 2,857 ✭✭✭Reloc8


    k_mac wrote: »
    Unless you acted in a criminal or negligent manner which brought about the incident.

    Where are you getting that from ?


  • #6
    FreudianSlippers
    Registered Users, Registered Users 2 Posts: 20,397 ✭✭✭✭FreudianSlippers


    If the company is being wound up it may be a different situation - Section 297A of the Companies Act 1963 and Re Mitek Holdings etc.


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