Limited Liability Protection for Directors
One reason for forming a limited company is the liability protection it provides directors. When forming a limited company, directors benefit from a separation between the company and its shareholders and directors. This establishes a legal entity separate from its owners, shielding directors from personal liability for the company’s debts in most cases.
Assets Protection and Liability
In general, the personal assets of directors are not typically seized from a limited company. This is because limited companies are separate legal entities from their directors and shareholders. Therefore, the directors’ personal assets are usually not at risk if the company becomes insolvent or is sued.
Enforcement and Personal Liability
- Bailiffs are not authorized to confiscate personal assets under any circumstances. Personal belongings are only at risk of being involved if there are breaches of fiduciary duty by directors. Only High Court enforcement officers with a warrant can force entry and remove company goods, not personal belongings.