Federal and provincial legislation impose personal liability on the directors of corporations for certain government claims, the most common being:
Some of these claims can be settled or eliminated within a formal restructuring process but often they must be specifically addressed and relief is not automatic. For this reason, a Trustee will need to know the status of the claims prior to filing the restructuring plan.
It is common for owners of a business to guarantee some of the business debt even if the business is incorporated. The existence of guaranteed debt can be a complicating factor in determining a course of action. In some cases, it may be necessary to restructure the personal financial affairs of the business owners at the same time as the business is being restructured.
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