Are former directors also liable for company liabilities?

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

20 February 2013 If a director resigns when there is some liability on the company & the other directors accept the resignation. Then will the former director be liable to pay these company's liabilities? If yes, then to what extent? What if he doesn't fulfill these liabilities, what charges can be framed against him & what can be the extreme consequences?

CA PARAS BAFNA

CA PARAS BAFNA (Expert)
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24 February 2013 The directors can not be made liable in respect of the liabilities of company unless the liabilities have arisen from

(a) Breach of fiduciary duty.
(b) Ultra Vires acts
(c) Negligence, and
(d) Mala fide Acts.

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For more details you may refer the link:
legalservicesindia.com/article/article/directors-&-their-liabilities-577-1.html

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