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Leon, Solicitor
Category: Australia Law
Satisfied Customers: 44191
Experience:  BEc Dip Ed, Dip Law (SAB) MTax (UNSW)
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My husband and i own a small company of which we are both

Customer Question

My husband and i own a small company of which we are both directors and he is the sole employee we are about to separate and i wish to have my name removed from his company however i believe he has amassed a bit of debt in the company name if i resign as a director and he continues to run the company am i liable for debts he has incurred before i resign as a director?
Submitted: 1 year ago.
Category: Australia Law
Expert:  Leon replied 1 year ago.

Good Afternoon

My name is ***** ***** I am a NSW Solicitor. Thank you for your question, and will do my best to assist you with your question. Please understand this is not legal advise Please understand this is not legal advise but a guide to assist you.

You are not liable for any debt that is accumulated after your resignation.

In relation to what is there now you can only be sued by the creditors if you guaranteed the debts. If the company is trading insolvent then both you and your husband as directors can be personally liable.

But the quicker you go the better.

You cannot be sued for anything he does after you leave.

I hope this makes sense and is of assistance if there is nothing further

thank you for using my services.

If I have missed anything, or you have any further questions please let me know

If there is anything else in the future please do not hesitate to ask.

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Expert:  Leon replied 1 year ago.

Good Morning

I am just following up my last post. If you need any further assistance, please do not hesitate to contact me.

Have a great new year