Directors
Director Liability When Closing a Company
Directors can be held personally responsible for certain unpaid amounts even after the corporation closes.
Common exposures
- Unpaid payroll source deductions
- Unpaid GST/HST
- Unpaid employee wages and vacation pay (varies by province)
- Personal guarantees on loans or leases
What to do
- Review every CRA account balance with your accountant.
- List any personal guarantees you have signed.
- Hold payouts to shareholders until a clearance certificate is issued.
If the business cannot pay its debts, see a licensed insolvency trustee.
This article is general information, not legal, tax or accounting advice.
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