Director liability for unpaid GST: directors jointly and severally liable unless they prove absence of gross neglect.

Section 89 establishes that where tax, interest or penalty due from a private company cannot be recovered, every person who was a director during that period is jointly and severally liable unless he proves the non-recovery was not due to any gross neglect, misfeasance or breach of duty. Subsection (2) exempts former private-company directors from that joint and several liability where the company converts to a public company and recovery could not be effected before conversion, while preserving liability for any personal penalty imposed on a director.

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