A director is a person elected by shareholders to oversee a corporation's management and affairs, carrying legal duties and, in some cases, personal liability.
A director sits at the top of corporate governance, responsible for supervising the management of the company and making major decisions. Directors owe fiduciary duties to act honestly, in good faith and in the corporation's best interests, and a duty of care in how they carry out the role.
Critically for tax, directors can be held personally liable for the corporation's unremitted source deductions and GST/HST, trust amounts the company failed to pay. This liability survives even incorporation's usual protection, which is why taking on a directorship carries real responsibility, not just a title.
A corporation fails to remit $30,000 of payroll source deductions before running into trouble. The CRA can pursue the directors personally for that amount, because unremitted trust funds pierce the usual corporate liability shield.
Our certified accounting firm handles this for businesses and individuals across Canada, at fixed fees with no surprises.
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