what happens to a director of a company in liquidation

When a company goes into liquidation, the directors powers are removed, and they cannot make business decisions or access the companys finances. The director will effectively lose all of their decision-making powers, and their role will be limited to assisting the liquidator. The liquidator will determine whether the directors may be held personally liable for company debts. If the liquidator finds that the director acted lawfully and met all their obligations, it is unlikely they will be held responsible. However, if the director breached their obligations or acted unlawfully, they can be responsible for debts or even face criminal charges. Directors will also be required to give the liquidator any information about the company they ask for, hand over the companys assets, records, and paperwork, and allow the liquidator to interview them if they ask. If the director signed a personal guarantee during their directorship and the company had insufficient funds to pay back loans, they will be held liable and will be chased for the repayment. Directors may also be requested to go to court by the Official Receiver for examination.