To be or not to be a director...that is the question!
I don't know if it's just a sign of the times, but the
number of dire situations we are seeing where accountants and
advisors have taken on roles as directors of companies that are
placed into liquidation, is quite astounding.
In one matter, we saw a highly qualified (and well respected)
accountant accept the role as director of a company, which
ultimately went into liquidation, with millions of dollars owing to
creditors. The company had three directors, comprising of two
non-resident directors and one Australian director (the
accountant). Business went bad and the two non-resident directors
absconded Australia and returned to their home country leaving the
Australian director to "face the music"—and
it's not a pretty song at all. The lesson is this case is quite
simple. Do not become a director of your client's company. If
you still choose to do so, understand the risks that will flow
directly to you if things
