I am the director of a limited company and am concerned by the financial position of the company. What duties do I have to the company and to creditors and what are the consequences if I breach these duties?

All directors have a fiduciary duty to act in the best interest of their company. If the financial position of the company is uncertain, the directors also owe a duty to potential creditors of the company i.e. the directors must ensure that if they continue trading they are not increasing the debts owed by the company. If a director breaches theses duties it is possible that they may be found personally liable for some or all of the debts of the company. Given the consequences of breaching these duties please contact us if you require further advice.