If you hold a position as a Director or Officer within a company, you are legally responsible for managing the company’s business activities.
When that company is responsibly managed in line with the legal obligations outlined in the Corporations Act, then directors and officers are not personally liable if the company subsequently has financial or regulatory issues. However, if the company has not been responsibly managed and large debts accrue which lead to financial difficulty, the Directors and Officers may be liable, legally and financially, for the debts incurred.