Corporate agents beware: Dr Mike Wilkinson dissects the mistaken belief that individuals running a company are shielded from personal liability for company wrongdoing
- Those running a company often claim—wrongly—that they cannot be sued personally for their role in any wrongdoing and that any third party dealing with the company can only sue the company itself for the harm they have suffered.
- While those running a company cannot be sued on a company’s contract, nor expected to give up property belonging to the company (unless the corporate veil is lifted), after the Supreme Court decision in Sevilleja v Marex Financial Ltd there is now no reason in principle why such persons cannot be sued for any wrongdoing they have committed or commissioned as a joint tortfeasor.
Persons dealing with a company often suffer losses at the hands of those running a company. They may wish to sue such persons individually, rather than suing the company itself—especially when the company is insolvent. All too often when such situations arise, misunderstandings abound, and third parties are deterred from bringing personal claims in the mistaken belief
