Hello again, many thanks for the answer, it is clear and what I had expected. More specifically, and assuming nothing takes place that is in breach of the law, what would be the scope of the liability? If, for instance, the worst case scenario happens and the new company goes bankrupt can she personally be pursued by creditors or similar even if she is in the UK?Essentially, I am trying to get an indication of whether it could potentially affect her own financial situation living outside France.Many thanks again and I very much appreciate your help.
Thank you for your follow-up question.
In the event that the new company were to go bankrupt, there is still the possibility of creditors of the company alleging a serious error of management and the French courts have the power to hold any company director liable for such errors. That decision could be enforced before the British courts.
In the event that the company was wound up, but your partner was not held personally responsible, then there should be no risk to her financial position.
In the event proceedings were brought against the company, a director would be summoned to appear before the court as its legal representative, although a lawyer could enter an appearance on behalf of the company.
One last point to bear in mind is that if her father has been disqualified from being a company director, he would be committing an offence by managing a company by proxy. This is an offence that carries a fine of up to EUR 375,000 and/or 2 years' imprisonment. Although the law is not clear on this point, if she participates, she may also be considered as an accomplice and may be personally liable towards third parties or shareholders who suffer loss.
I hope this answers your question.
Lawyer with Maîtrise en droit & Licence spéciale en droit européen.
I hope I answered your questions.
I'd be grateful if you could click accept. Thanks in advance.
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