13/03/2026
Could You Be Personally Liable for Your Company’s Debts?
Many directors believe their personal assets are always protected by the company’s separate legal identity. While this is generally true, there are important exceptions. If a director signs personal surety or breaches their fiduciary duties, they could face personal liability for company losses or debts.
A recent court case involving a claim of R41.4 million highlights just how serious these risks can be. Creditors, employees, stakeholders, or even the company itself may take legal action against directors who fail to meet their obligations under the Companies Act.
Understanding your duties, keeping proper financial records, ensuring compliance, and acting in the company’s best interests are essential steps to protecting yourself.
If you’re a director and unsure about your legal responsibilities or potential risks, Lombard Attorneys is here to help. Our team can guide you through your obligations, assess your risk, and help protect both your business and your personal assets.
Contact Lombard Attorneys today for professional legal guidance and peace of mind.