Add more to this paragraph Under the Insolvency Act 1986, directors can be held personally liable for the company's debts if they continued to trade while knowing that the company was insolvent or if they acted negligently. In this case, Jackie took out a loan of £25,000 from a third bank against the advice of financial consultants and accountants. She invested £10,000 of her own money into the business, despite the company facing financial difficulties. This action could be seen as negligent, and Jackie could be held personally liable for the company's debts.

Add more to this paragraph Under the Insolvency Act 1986, directors can be held personally liable for the company's debts if they continued to trade while knowing that the company was insolvent or if they acted negligently. In this case, Jackie took out a loan of £25,000 from a third bank against the advice of financial consultants and accountants. She invested £10,000 of her own money into the business, despite the company facing financial difficulties. This action could be seen as negligent, and Jackie could be held personally liable for the company's debts.