Best Discrimination Attorneys in Saint Albert, AB

In Alberta, directors of a corporation can be held personally liable for certain debts of the corporation in the event of bankruptcy or otherwise. This is because a director has a legal responsibility to ensure that a corporation is able to pay its debts as they become due and to ensure the corporation has sufficient liquid assets to satisfy these obligations.  The liability of a director for the debts of a corporation can arise from a number of different sources, including those discussed below. Legislation One of the most common debts for which directors may be held liable in bankruptcy is unpaid wages and other employment-related debts. Under the Employment Standards Code (Alberta), directors can be held personally liable for unpaid wages, vacation pay, and other entitlements of employees if the corporation is unable to pay these debts. Additionally, if a corporation has failed to make contributions to a pension plan or other employee benefit plan, the directors may be held liable for these debts in the event of bankruptcy. Directors may also be held personally liable for unpaid taxes, including GST (HST, where applicable) and income taxes, if the corporation is unable to pay these debts in the event of bankruptcy. This is because the Canada Revenue Agency (CRA) has the authority to pursue directors for unpaid taxes under the Income Tax Act and the Excise Tax Act. The Business Corporations Act (Alberta)...