This Practice Note discusses the effect of bankruptcy, receivership and insolvency restructuring on the personal liability of a director for certain obligations of a company in a formal insolvency proceeding. These liabilities include employee wages and other employee claims, unremitted source deductions, unremitted payments of GST, HST and PST, the repayment of dividends and shares redemptions and repurchases and any non-market severance and bonus payments made to directors and senior management while the company was insolvent.