Directors liability

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One of my properties is a block where the agent appointed by the Directors of the management company has run off with the money. The management company owns the freehold of the 24 flats of which mine is one. The previous directors of the management company all resigned and I was appointed as a director, along with some other owner-landlords so we could sort out the mess.

One of the creditors has filed a petition for the management co. to made insolvent in order to recover what they are owed (around 7000). We have tried to negotiate but it is not going well. I expect they are hoping that the Directors will have to cough up the cash as the management company has no assets, but is 'limited by guarantee'.

Can anyone tell me whether we, as the new directors, can be made liable for the debts incurred under the directorship of the previous directors? Anyone with any thoughts/similar experiences, or who as had a management company go insolvent, thereby having to (presumably) change deeds to handle new freeholder, etc.?

Complicated one I know, but any experience/advice out there would be most useful!

Cheers

Ian.

23/03/2009 00:00

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