ACTION TAKEN BY THE CREDITORS

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

09 October 2010 there is a case where there is a reduction in the membership below statutory minimum(sec.45.)and the creditors take action for recovery from the shareholders for recovery of debts..

my query- one of the features of company is limitation of action i.e. the creditors can sue the company but not its shareholders....the company in turn will recover the amount from shareholders......in the above case will this be applicable??

Querist : Anonymous

Querist : Anonymous (Querist)

09 October 2010 i got the answer it is because they are severally liable..

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