Director liability: directors of private companies can be jointly and severally liable for unrecoverable GST unless exculpated by lack of gross neglect. Section 89 makes every person who was a director of a private company during a period for which tax, interest or penalty in respect of supplies cannot be recovered from the company jointly and severally liable for those amounts unless the director proves non-recovery was not due to any gross neglect, misfeasance or breach of duty. Where a private company is converted into a public company, sub-section (1) does not apply to directors for unrecovered liabilities predating conversion, but personal penalties on directors remain unaffected.