Am I personally liable if my company is liquidated?
Normally, a company’s debts belong to the company, not its directors. A director may still be personally responsible where they signed personal surety, became liable under a contract, or the facts support personal liability under the law.
The general rule
A company is a separate legal person. If it cannot pay all its debts during liquidation, that does not automatically make the directors personally responsible for the shortfall.
When personal liability may arise
- A director signed personal surety for a bank, landlord, supplier or other creditor.
- A debt or agreement was entered into in the director’s own name rather than the company’s name.
- There are allegations of reckless or fraudulent conduct, misuse of company money or a breach of directors’ duties.
- The director owes a separate personal debt that is not part of the company’s liquidation.
What should a director do before applying?
Gather any suretyships, finance agreements and important creditor correspondence. Tell us if legal action has already started, or if any creditor says that you personally owe the money. That information helps identify issues early; it does not automatically mean you are liable.
Personal liability depends on the documents and facts. This page gives general information and is not legal advice for your specific situation.
Ready to take the next step?
Apply online. We check the details first and confirm whether voluntary liquidation fits your company.
Start your application