Director liability for unpaid company tax creates joint and several responsibility unless gross neglect is disproved.

Directors of a private company are jointly and severally liable for unpaid tax, interest or penalty where recovery from the company is not possible, unless a director proves that the non-recovery is not attributable to his gross neglect, misfeasance or breach of duty. On conversion of a private company into a public company, that joint and several liability does not apply to persons who were directors during the private-company period for the unrecovered amounts, but the exclusion does not affect any personal penalty imposed on a director.

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