Director liability for unrecovered company tax creates joint and several responsibility unless director proves absence of gross neglect. Directors of a private company are jointly and severally liable for tax, interest or penalty that cannot be recovered for supplies during their tenure unless the director proves the nonrecovery is not due to gross neglect, mis-feasance or breach of duty; if the company converts to a public company and amounts were unrecoverable before conversion, the joint and several liability does not apply to former private-company directors, though personal penalties on directors remain unaffected.
Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.
Provisions expressly mentioned in the judgment/order text.
Director liability for unrecovered company tax creates joint and several responsibility unless director proves absence of gross neglect.
Directors of a private company are jointly and severally liable for tax, interest or penalty that cannot be recovered for supplies during their tenure unless the director proves the nonrecovery is not due to gross neglect, mis-feasance or breach of duty; if the company converts to a public company and amounts were unrecoverable before conversion, the joint and several liability does not apply to former private-company directors, though personal penalties on directors remain unaffected.
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