If you’re chasing recalcitrant company debtors this may be a useful case to have up your sleeve. For directors of debtor companies it’s a clear statement that they can’t simply disregard their creditors and hide behind the security of the limited liability of their companies.
Claims Under Personal Guarantees
The concept of limited liability is, of course, almost always rather illusory for smaller companies in particular. Invariably a bank will require personal guarantees from the directors as well as a charge over the company’s own assets. Directors and others should remember that lenders ask for guarantees for a reason, and that if a guarantee is given it should be assumed that payment will have to be made.