Personal liability extended for directors of corpo

Viewing 4 posts - 1 through 4 (of 4 total)

Terryw
Participant
@terryw
Join Date: 2001
Post Count: 16,213
May 20, 2004 - 1:14 pm
Hi there.
It may be of interest to all the Trust junkies out there to hear about a recent South Australian Supreme Court decision. (Hanel & Anor v O’Neill [2003] SASC 409 (Supreme Court of South Australia (Full Court)).
It seems that the court has decided that “Directors of corporate trustees will be personally liable for any liability incurred by the trustee if the trustee had insufficient assets to meet that liability at the time it was incurred. “
For more info have a look at these:
http://www.lawfuel.com/index.php?page=articles&handler=focus&publicationid=282&return=blur-article
and
http://www.mallesons.com/publications/alerts/Financial_Services_Alerts/7282186W.htm
Terryw
Discover Home Loans
North Sydney
[email protected]
Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email Me
Lawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
FFComm
Member
@ffcomm
Join Date: 2004
Post Count: 627
May 22, 2004 - 5:43 am
Wow!!!
This is bad news. I feel that we should get a small party together and kneecap the bloke who refused to pay the rent…
What are your thoughts on a company being trustee???
Also what are the implications of lawsuits??? (is the trustee liable for accidents (i.e. some moron trips over a carpet and sues you for six figure sum??)).
Rgds.
Lucifer_au
Terryw
Participant
@terryw
Join Date: 2001
Post Count: 16,213
May 22, 2004 - 7:40 am
Lucifer
Just remember, this guy signed a lease as director of the trustee company and then broke it mid term. when they sued, the trust had no assets so they have come after him. Usually a director/trustee would be required to provide a personal guarrantee. In this case it looks like he didn’t. But it is something deliberately done by the trustee. If there were accidents etc, then I am sure it would be different.
Also good trust deeds may help.
But I am not a lawyer, so don’t know what the hell I am talking about. Just bs-ing a bit!
Terryw
Discover Home Loans
North Sydney
[email protected]
Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email Me
Lawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
FFComm
Member
@ffcomm
Join Date: 2004
Post Count: 627
May 22, 2004 - 2:43 pm
I think I would have to agree with you. One of the good things about a trust is protection of assets. It would be pointless if that protection would be removed….
Well here hopeing!
Rgds.
Lucifer_au