BY THE WAYNot of the hook even in wosrt case senario..
When a corporation enters bankruptcy, the trustee in bankruptcy generally reviews the
transactions made by the corporation within the preceding year to determine if the transactions
were made at arm's length and that the corporation received adequate consideration. Directors or
officers may be liable if they participated in a transaction where, in the year preceding the
bankruptcy, the corporation sold, purchased, leased, hired, supplied or received property or
services for a price conspicuously greater or less than the fair market value, as the case may be.36
There are numerous bankruptcy offences specified in the Bankruptcy and Insolvency Act.
37 If a
corporation commits an offence, any director or officer of the corporation or any person who has
or had, directly or indirectly, control in fact of the corporation, who directed, authorized,
assented to, acquiesced in or participated in the commission of the offence is a party to the
offence and liable to conviction whether or not the corporation has been prosecuted or
convicted.38 Anyone convicted of an offence may also be liable to pay compensation to a person
for loss or damage resulting from the commission of the offence and this liability is in addition to
any other penalties that may be imposed
SOURCE
https://www.cwilson.com/publications/private-company-transactions/director-and-officer-liability-in-insolvent-circumstances.pdf