We are all familiar with the “voluntary” ways in which we allow Company creditors to “pierce the corporate veil” by giving personal guarantees to Banks, Leasing Houses, Invoice discounters, and crucial Suppliers – sometimes you know that you just will not get the facilities unless you sign up. Demand for the repayment of these guarantees should not come as a surprise to you, should your company enter insolvent liquidation or some other insolvency procedurecheap viagra buy.
Then there are the “involuntary” ways in which you might find that personal liability attaches to you for company debts – for instance, if the Liquidator takes action to hold you liable for Reckless Trading in the period prior to liquidation and if the Court agrees and imposes some measure of personal liability for the debts you ought to have known not to incur, because the Company was insolvent at the time. To this category of “involuntary” ways it appears that a new candidate can be added – arrears of pension contributionscan you buy viagra in dubai.
cheapest generic viagra cialisWhere a Company enters insolvent liquidation and there is a pension scheme, there are usually arrears of pension contributions owing to it. If the Company is the Trustee and the scheme is in the name of the Company, then the Company would be primarily liable. There may be some element that can be reclaimed from the Insolvency Payments Fund, but there may be a rump that is not covered by that Fund – as a debt of the Company, you might think that that is where it will rest and that you are not personally liable, as a Director, for the debts of the Company…
Well, you might not be technically liable, but the Pension Ombudsman has found a way to put pressure on you to make good the arrears of pension contributions. The source of the pressure is located in Section 3 (4) of the Pensions Act, 1990 – where a director of a body corporate may be found guilty of an offence committed in relation to the pension scheme by the body corporate in its capacity as Trustee, “as if he were guilty of the first-mentioned offence”.
cheap viagra indiaThe deemed offence, in the eyes of the Pensions Ombudsman, is the non-payment of contributions into the fund. The potential punishments for the offence are the usual ones of fines or imprisonment. The threat is that, if the director does not take it upon himself “to do the right thing” so to speak and make good the arrears of pension deductions, the Ombudsman will take his complaint to the Garda Fraud Squad and accuse the director of fraud. Under that threat of potential prosecution, the director may decide to pay the arrears.
The building industry is in disarray. Every employee is a member of the CWPS or is deemed to be and deductions are made or deemed to be made from all their wages. Substantial arrears can build up in an insolvent company prior to formal liquidation. Directors need to be aware that such arrears may ultimately fall on them personallycialis pills.
How are the courts dealing with this scenario? Has anyone been prosecuted yet?