There are a number of statutes which make directors liable for a corporation’s failure to pay or remit funds and which in most cases make it an offence for a director if the corporation fails to remit the proper payments. They include obligations to remit deductions for employee income tax, employment insurance premiums, contributions to the CPP, GST and retail sales tax, vacation and holiday pay, employer health tax remittances, Ontario corporations tax, environmental protection obligations, occupational health and safety obligations etc. This paper is not intended to deal with those obligations which are generally well known, except to discuss techniques to relieve directors from the burden of those obligations in insolvency situations.

This paper was presented at the Second Annual Advanced Insolvency Law & Practice Conference.

type Sources of Liability and Protection for the Directors of an Insolvent Corporation