A company is generally a separate legal person, so a director is not automatically personally liable for every company debt. Personal liability can nevertheless arise in particular circumstances, depending on the transaction, guarantees, conduct and applicable law.

Check whether the director signed a personal guarantee or otherwise assumed personal obligations. Separate legal personality is important, but it is not an absolute shield against every form of liability.

The facts matter considerably. A lawyer should review the underlying contract, any guarantee and the director's conduct before reaching a conclusion.