What happens when a director is in breach of their duties?
- There is a broad range of consequences which may apply in the event of a breach of duty by a director. These will usually depend on the severity of the breach.
- For example the personal assets of a director may become accessible to creditors in an insolvency or litigation situation where the director has been negligent.
- In some instances directors may also be fined and have damages awarded against them.
- In severe cases directors may face imprisonment.
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