Director's Liability

One of the benefits of having a corporation is protection from corporate liabilities for the shareholders, officers and directors of corporations. However, directors of corporation are generally liable for the following corporate debts:

1. Payroll source deductions (income tax withheld, CPP, EI), including interest and penalties.

2. GST, HST, and other provincial sales tax.

3. Environmental pollution.

4. Unpaid wages and vacation pay of employees.

5. Statutory trusts such as trust provisions of the Construction Lien Act of Ontario.

Before becoming a director and during your term as a director, it is imperative that you perform due diligence to ensure the above noted areas are complied with. Failure for directors to exercise due diligence will likely result in direct Director's liability to pay the amounts owing.

To mitigate or avoid these problems, contact Keith Anderson CA at (780) 447-5830 if you need advice. 

Legal Notice And Disclaimer

Privacy Statement