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Directors and fraud

Sarah-LouSarah-Lou Well-KnownRegistered Posts: 141
Hi guys :)

I don't do Ltd companies and I was chatting to a friend last night and he was saying about a situation he has become aware of;

Very large construction company with 5 directors. 2 of the directors have been undertaking construction contracts on their own and receiving payment for these privately (although they have been suing the company's good name to get the contracts) and some of the building supplies have been put through the company. The other 3 directors have just found out. My friend was asking would the 3 directors be liable for fines/tax/legal action etc as they knew nothing about it. The private contracts in questions are worth a few £100,000.

This isn't a job I'm taking on but I thought it was a scenario I would be interested in knowing who would be liable for what.

Thank you and have a lovely day!

Sarah-Lou
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