Time flies with great content! Renew in to keep enjoying all our premium content.
Prime
Tax: When can directors be held personally liable?
In recent cases involving tax obligations, the distinction between the company and its directors may be set aside, potentially leading to personal accountability for directors and senior executives on account of tax liabilities of the company.
A fundamental aspect of Kenya’s company law is the recognition of a company as an independent legal entity, distinct from its shareholders and directors.
While directors have fiduciary duties towards companies, including the requirement that they always act in the best interest of the company, such duties have not usually extended to bearing personal responsibility for the liabilities of a company, provided they operate in good faith.
