Director liability for unrecovered GST makes former private company directors jointly and severally responsible unless gross neglect is disproved.

Directors of a private company are jointly and severally liable for tax, interest or penalty not recovered for any period during which they were directors, unless they prove that non-recovery cannot be attributed to their gross neglect, misfeasance or breach of duty. If the company is converted into a public company and recovery was not possible before conversion, that joint and several liability does not apply to former private-company directors, but personal penalties on such directors remain enforceable.

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