Derek has recently graduated with a Master of Health and Human Services

and is looking to set up his own business. Derek recalls from his study in

MPA702 that a company structure would be the most suitable for him as he

would not be personally liable for any debts of the company. Derek would be

the sole director and shareholder of the company.

Advise Derek of any circumstances in which he may be personally liable for

the debts of the company. Include all sources and provisions in your answer.

Note: any issues relating to the Australian Taxation Office are not required

for this answer.