The Court of Appeal has overturned the finding of the High Court that the directors of a liquidated company were personally liable to a creditor pursuant to s. 297A of the Companies Act 1963. Justice Hogan stated that it was not enough to show that the directors were aware that the loss might have occurred, when the standard imposed by the legislation was an awareness that the loss would have occurred.
In 2015, the High Court held that the directors of a liquidated company, Graham Sedgwick and Colin Farrell, were personally liable to Toomey Leasing Ltd for 48,250. Toomey Leasing Ltd was a creditor of Appleyard Motors Ltd; and Mr Sedgwick and Mr Farrell were directors of Appleyard until it went into liquidation in June 2012.
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Read the full article at: http://www.irishlegal.com/5640/court-of-appeal-liquidated-companys-directors-not-personally-liable-for-debt-when-loss-to-creditor-was-unforeseeable/