Here is yet another example where director was found personally liable for the payment of wages, and once he failed to comply with the ministry’s orders, he had to deal with the consequences.

A proper review of this case should show to many entrepreneurs and business owners the exact extent of their personal liabilities for the operations of their businesses. In this example, the company failed to pay its employees $240,000 of various employment related payments. As the company failed to comply with the ministry’s orders, its director was ordered to do so personally. And once the director failed to pay over $60,000 to the employees of the company, he was personally fined for more than 50% of the outstanding amount.

Bottom line – now he owes almost $100,000 in various payments, all of which could be collected against him and his personal property (home, pension plan, saving accounts and more). This example emphasizes once again the importance of the proper understanding of the personal liabilities that each director owes for the debts and obligations of the company. This issue becomes even more important in situations of small and medium businesses, where company owners usually act as its directors and executive officers.

At CBES, we always combine our business services with training and educating business owners and executive teams of the risks and responsibilities that they acquire just by acting in their capacity as directors and managers of a company.

For more information, or to request a 30 minutes free consultation on corporate legal, administrative and business compliance, please visit our website or contact us.