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| Author: |
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Grant |
| Date: |
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March 2, 2005 |
| Question: |
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I am thinking of selling a company to a friend who filed for both personal and corporate bankruptcy 2 years ago. He was discharged one year ago. Someone told me I can't legally do this as someone who has been bankrupt can not be a director of a company for 5 years after the bankruptcy.
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From: |
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Ann Clarke, Alger & Associates Inc. |
| Date: |
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March 2, 2005 |
| Answer: |
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The Business Corporations Act prohibits anyone who is an undischarged bankrupt from being a director of a corporation. As soon as a bankrupt has been completely discharged, I believe they can be a director again. If you have any other concerns about this matter I'd suggest you ask your corporate lawyer.
Ann Clarke
phone: (403) 296-2972
aclarke@alger.ca
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