Section 224 of The Companies Act No. 17 of 2015: Personal liability for company’s debts if person acts while disqualified

    

(1) For the purposes of this section, a person is personally responsible for all the relevant debts of a company if at any time—
(a) the person is concerned in the management of the company in contravention of a disqualification order or of section 223; or
(b) as a person who is involved in the management of the company, the person acts or is willing to act on instructions given without the leave of the Court by another person whom the person knows at that time to be the subject of a disqualification order or to be an undischarged bankrupt.
(2) A person who is personally liable under this section for the relevant debts of a company is jointly and severally liable in respect of those debts with the company and any other person who, whether under this section or otherwise, is so liable.
(3) For the purposes of this section, the relevant debts of a company are—
(a) in relation to a person who is personally responsible under subsection (1)(a)—such debts and other liabilities of the company as are incurred at a time when that person was involved in the management of the company; and
(b) in relation to a person who is personally responsible under subsection (1)(b), such debts and other liabilities of the company as were incurred at a time when that person was acting or was willing to act on instructions given as referred to in that paragraph.
(4) For the purposes of this section, a person is involved in the management of a company if the person—
(a) is a director or secretary of the company; or
(b) is concerned, whether directly or indirectly, or participates, in the management of the company.
(5) For the purposes of this section, a person who, as a person involved in the management of a company, has, without the leave of the Court, at any time acted on instructions given by another person -whom the person knew at that time to be the subject of a disqualification order or to be an undischarged bankrupt is presumed, unless the contrary is shown, to have been willing at any time afterwards to act on any instructions given by that other person.


Disclaimer: This document is not to be taken as legal advise.

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