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Research · Company lawAnswered in 9 s

Can a director be held personally liable for the debts of a Cyprus private company?

Answer

As a rule, no. The company is a separate legal person and its debts are its own. A director becomes personally liable only where a statute or a recognised ground makes him so. The Court may relieve an officer who acted honestly and reasonably under , but where the business was carried on with intent to defraud creditors the Court may declare him personally responsible for the company’s debts under . English authority is persuasive on the reach of the duty: once a company is insolvent or of doubtful solvency the directors must have regard to the interests of creditors .

Order to cite: II Cap. 113 → IV English common law

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