Liabilities of a Director – English Law

There are many different situations in which a director can be personally liable under English law.
This can be personal liability due to actions relating to health and safety, consumer protection,
environmental, employment and bribery/anti-corruption. Personal liability can also arise in insolvency
situations when the directors knowingly or negligently allow the company to carry on trading. This is
known as fraudulent or wrongful trading.
Directors also owe statutory duties under the Companies Act 2006 to the company, as well as duties
that are derived from common law or in equity.
The statutory duties owed apply to directors and shadow directors and are found in sections 171-177
(inclusive) of the Companies Act 2006.

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