Legal Advice on Directors' Liability


Questioner

My private limited company has an outstanding claim against another company (Company B). Company B summoned both my company and myself as directors. The judge granted Company B's claim, explicitly stating that the judgment would not be joint and several, as no valid legal basis had been established. Because both my private limited company and I, as a director, were summoned, the judgment includes both the private limited company's name and my name. It does, however, state that I am not personally liable. This is justified, as director liability is a serious matter that requires thorough investigation. The plaintiff now states that I am not personally liable but rather personally liable because my name is in the judgment. We're now at an impasse with the plaintiff seizing my personal belongings. Who's right?

Questioner

The plaintiff is correct. If you are personally convicted, you are jointly and severally liable. If there is no joint and several conviction, you and your private limited company are jointly and severally liable for the entire liability.

Questioner

As a summoned party, your name will always appear in the judgment, as a ruling must be rendered. However, the important thing is what that ruling is. Without reading it, there's no point in making any pronouncements about who's right. And what about joint liability instead of several liability? I have no idea what that means. Please feel free to contact me to discuss the personal details of the matter.

Questioner

So they're claiming that you were convicted in the judgment in your private capacity, not the private limited company. It seems like a typo if that's what it says. It's improper to enforce the judgment against you in your private capacity, and it wouldn't hold up on appeal. Has the deadline for an appeal expired yet?

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