As an organisational Director, Isle of Man law dictates that you must be able to exercise a certain standard of care in financial matters – regardless of whether you are holding a finance-specific role within the company or not.
The risk of personal liability
As seen recently with the Patisserie Valerie fraud case, the group’s multi-millionaire chairman, Luke Johnson, was forced to use £20m of his own money to keep Patisserie Holdings in business, after finding that it was nearly £10m in debt instead of having £28m in the bank, as it had last reported.
The Directors have said they were unaware until 10 October that Patisserie Holdings’ main trading subsidiary, Stonebeach, faced a winding-up petition from HMRC over a £1m unpaid tax bill. Read more…..