In a UK case the court made some pertinent remarks about the personal liability of a director:
- A director is not liable for the wrongdoing of her/his company merely by reason of being a director.
- The director is liable for wrongs personally carried out by her/him.
- A director is also liable where she or he has procured or directed the company to commit the wrongful act.
- A director who procures payments to be made out of an account where the money was supposed to be held in trust may be personally liable for doing so.
- No-one can escape liability for fraud by saying ‘I wish to make it clear that I am committing this fraud on behalf of someone else and I am not to be personally liable’.
The case is Miles Smith Broking Limited v Barclays Bank Plc.