Part 40Company directors: foreign disqualification etc

Power to make persons liable for company’s debts

1187Personal liability for debts of company

1

The Secretary of State may provide by regulations that a person who, at a time when he is subject to foreign restrictions—

a

is a director of a UK company, or

b

is involved in the management of a UK company,

is personally responsible for all debts and other liabilities of the company incurred during that time.

2

A person who is personally responsible by virtue of this section for debts and other liabilities of a company is jointly and severally liable in respect of those debts and liabilities with—

a

the company, and

b

any other person who (whether by virtue of this section or otherwise) is so liable.

3

For the purposes of this section a person is involved in the management of a company if he is concerned, whether directly or indirectly, or takes part, in the management of the company.

4

The regulations may make different provision for different cases and may in particular distinguish between cases by reference to—

a

the conduct on the basis of which the person became subject to foreign restrictions;

b

the nature of the foreign restrictions;

c

the country or territory under whose law the foreign restrictions were imposed.

5

Regulations under this section are subject to affirmative resolution procedure.