Question 2 Leanne Park has concerns regarding the unlimited liability status of a sole trader and she is considering set
Posted: Tue Apr 26, 2022 9:51 am
Question 2
Leanne Park has concerns regarding the unlimited liability status
of a sole trader
and she is considering setting up a proprietary limited company.
She has read
about shareholders enjoy limited liability and finds this
attractive. Leanne will be
the only shareholder and director of the company.
Required:
Discuss are there any circumstances in which Leanne Park, as a
director, could
be personally liable for any debts of the company? (Note: In your
answer, cite all
relevant legislation, if any.)
Leanne Park has concerns regarding the unlimited liability status
of a sole trader
and she is considering setting up a proprietary limited company.
She has read
about shareholders enjoy limited liability and finds this
attractive. Leanne will be
the only shareholder and director of the company.
Required:
Discuss are there any circumstances in which Leanne Park, as a
director, could
be personally liable for any debts of the company? (Note: In your
answer, cite all
relevant legislation, if any.)