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In What Circumstances May a Director Be Personally Liable for the Debts

Question 48

Multiple Choice

In what circumstances may a director be personally liable for the debts of an insolvent company?


A) The director reasonably expected that the company was solvent.
B) The director was entirely ignorant of the operations of the insolvent company.
C) The director reasonably relied on information from another that the company was solvent.
D) The director did not take part in the management of the company due to illness.

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