Personal Liabilities of Company Directors

The impact of the coronavirus (Covid-19) pandemic continues to be felt in Hong Kong where businesses have been dealing with political unrest for more than a year and disruption in the US/China relationship is ongoing.

“The position of a director is one of increasing personal risk as a company approaches the insolvency zone.”

Directors of companies under increasing cashflow pressure are reminded of duties owed to creditors over shareholders when insolvency is under consideration. Personal liability can arise as an issue when pressure from suppliers and other creditors to make payments places directors in a difficult position.

“The position of a director is one of increasing personal risk as a company approaches the insolvency zone.” say Timothy Loh and Mary Lam in this article on the subject.