Section 89 - Liability of directors of private company.

Directors jointly liable for unrecovered private company tax unless they prove no gross neglect; conversion to public company limits liability

If tax, interest or penalty due from a private company for supplies cannot be recovered, every person who was a director during the relevant period is jointly and severally liable for that amount unless they prove the non-recovery was not due to their gross neglect, misfeasance or breach of duty. If the private company converts to a public company and the liability could not be recovered before conversion, that joint and several liability on former directors does not apply to such liabilities arising from the private period, although any personal penalty imposed on a director remains enforceable.