Limited company liability

[oxocubed]

Hi all, just joined.

I have my own limited company working in the building services industry and I am the only employee.

Due to my years of specialist experience in data centre refurbishment, I was recently employed by a large engineering consultancy. However the person in charge had very little experience (was also a lying b******) but persisted in telling me how to proceed -his approach was always wrong!

So ,I saw myself with two choices, either, do it his way and watch it all go wrong. But then he would deny any invovement and blame me and his company would believe/back him.

Or, walk out - thats what I did!

The consequences losses due to mistakes in this field could be in tens of millions - if not more.

My question is, even though I work for my limited company - are there any circumstances where I could be found personally liable and up losing everything.

[fisicx]

An interesting question.

I did find these:

Creditors usually can't reach the personal assets of the Limited Liability Company (LLC) owners, such as a house or car. (Both LLC owners and corporate shareholders can lose this protection by acting illegally, unethically, or irresponsibly).

Every member who actively participates in the business of the LLC runs the risk that his action or inaction will result in personal liability. This is particularly a risk of a service business in which the members provide the key service. If you are an electrician and you leave an exposed wire that electrocutes someone, your LLC is not going to protect you.

...there may be instances when personal liability cannot be limited. This situation usually affects directors who may be personally liable if they have acted fraudulently of negligently. In particular, you should be aware of the personal liability which can accrue to directors if their company trades whilst it is insolvent.

So I think the answer to your question is, yes - you can be found personally liable.

But don't take my word on it, ask a legal representative.

[Ian J]

Originally Posted by oxocubed

So ,I saw myself with two choices, either, do it his way and watch it all go wrong. But then he would deny any invovement and blame me and his company would believe/back him.

There was a third option of minuting discussions to provide an official record.

The liability of your company would depend on the wording of the contract but most contracts would limit the liability to things that you have done wrong plus any costs incurred by the contractor in replacing you. It's highly unlikely that you could be sued for losses that were outside your control.

In any event it should be your company that any liability would be with and not yourself as a director / employee

[LimeLegal]

Your own contracts should cover lawful termination in such cases, if they do not then get the updated. In all cases it is preferable to write down your complaints and notify the company, in writing that you intended to terminate the contract and the reasons for this.

Not only does it show your company as the more professional it also provides a trail of paper in the event of any litigation for breach of contract. On your posting this does not seem like a case where a director would be personally liable.