Ceasing Operations? Make Sure Directors Resign

Most situations in Canada that involve directors being required to make personal payments for organization’s debts involve Canada Revenue Agency (CRA). CRA has the ability to require directors to make payments for source deductions and sales tax, when those payments have not been made by the organization itself.

When an organization ceases operations, it is important that directors get legal advice about their obligations. It can take years for an organization to be dissolved due to non-payment of fees. Until the organization is dissolved, any directors who have not resigned are still directors and therefore still liable for making payments.

Any debts that come to light while you are a director are potentially debts that you might have to pay. So … resign and make sure your resignation is recorded at the Joint Stock office in your province.

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