Judicial Committee of the Privy Council Rules Sole Director Not Liable for Company Rent Arrears

UK Ruling: The Judicial Committee of the Privy Council has ruled that an individual was not liable for rent arrears under a lease granted to his company, even though the company was formed after the lease was finalised and a court later concluded that it was being used as an avoidance mechanism. The Council held that to look beyond a company's legal status and hold a director personally liable requires more than a claim that the company was a front.