Legal Question in Business Law in Australia

Hi there. I would like to register Pty Ltd. Company. Let's say, both me and my business partner would become directors. Is there any legal agreement which would protect one of the director against liability for any potential debts in future. For example, Company is insolvent and according this agreement , one director is liable for debts and insolvency and second director would become free of liability. Thank you for your answer. Martin

Asked on 9/18/13, 1:42 am

1 Answer from Attorneys

Steve White White SW Computer Law
0 users found helpful
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Four important points:

1. You need proper legal advice. For a quote contact

2. Indemnities and guarantees often need to be in writing to be enforceable depending on the relevant law which differs from state to state.

3. An indemnity or guarantee is only as good as asset base of the person/entity offering same at the time you seek to enforce same.

4. Most importantly, an indemnity or guarantee is of no protection against third party claims by creditors and ASIC etc.

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Answered on 9/18/13, 11:52 pm

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