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As I understand it, not really, unless management or the board were freely mixing personal and company assets, for example using a company credit card to pay pe
by kevinburke 9y ago
As I understand it, not really, unless management or the board were freely mixing personal and company assets, for example using a company credit card to pay personal expenses. No evidence that took place here.
Reading the law at the link, it says you’re only liable if there was no “reasonable chance” of avoiding insolvency. The sale they were pursuing would have provided enough cash to pay debts so I don’t think it would even pass that test. Poor management is not a crime, unfortunately.
- rahimnathwani 9y agoI wonder whether directors' salaries were paid whilst contractors' invoices were overdue. Also, does the company have any assets? Even it's out of cash then, unless it's filed for bankruptcy/insolvency/administration (I think it's called 'chapter 8' in the US?), can't you still file a small claims court case? Maybe get some Aerons in lieu of cash?
- kevinburke 9y agoSmall claims doesn't get you anything if there's nothing to claim. Sure I could get chairs but I could also just go back to work and make the money back.