Directors Found Personally Liable

The Company Act states that where a company fails to properly register as an out-of-province company doing business in B.C., any person acting as a representative or agent of a company may be personally liable for the debts and obligations incurred by the company. In addition, that person commits an offence and may be liable for a fine up to $50.00 per day until the company is properly registered.

This problem may also arise for B.C. company directors who fail to have the B.C. company registered to do business in other jurisdictions with similar statutory provisions. Therefore, if you are a director of a B.C. company that has dealings in another jurisdiction, it is advisable to check whether you should be registering the company in that other jurisdiction.

This article is not legal advice and a lawyer should be consulted on any specific case.