Errol is the only member of Frankfurter CC. Due to the unfavourable economic climate Frankfurter CC has incurred substantial debts. The corporation owes its bank a substantial sum on overdraft. Some of the creditors are now complaining that Errol failed to disclose the corporation’s terrible situation when Errol placed further orders with them. The creditors also allege that Frankfurter CC’s business has been carried on recklessly.Required:Discuss whether Errol can be held personally liable for Frankfurter CC’s debts. (10 marks)
