Being a director and asset protection

Discussion in 'Legal Issues' started by The Y-man, 9th Apr, 2021.

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  1. The Y-man

    The Y-man Moderator Staff Member

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    To those out their who have stated their own companies etc - I've been approached to get involved with a startup, and in addition to shares, been offered a place to steer the ship as one of the directors.

    As my IP are held in my own name, is there a major asset protection issue here? (Actually they are all mortgaged, so I don't have the title)....

    The Y-man
     
    The Y-man, 9th Apr, 2021
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  2. Terry_w

    Terry_w Lawyer, Tax Adviser and Mortgage broker in Sydney Business Member

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    Sure is. There are about 200 ways that a director can be personally liable for a company's debts. It is generally rare though for a director to be go down with the company
     
    Terry_w, 9th Apr, 2021
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    lixas4 and The Y-man like this.
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