Section 89 - Liability of directors of private company.

Director liability for unpaid GST: directors may be jointly and severally liable unless they disprove gross neglect or misconduct.

Directors of a private company are jointly and severally liable for tax, interest or penalty on supplies where such amounts cannot be recovered from the company, unless the director proves non recovery was not due to gross neglect, misfeasance or breach of duty. Upon conversion of a private company into a public company, that director liability does not apply to former private company directors for unrecovered amounts from the private period, except that any personal penalty imposed on a director remains unaffected.