Directors' Duties and responsibilities
This query is : Resolved
26 October 2009
Dear all,
One of my friend is holding 26% of shares of a pvt ltd company registered as nbfc under rbi guidelines.
1) is it mandatory for him to become a director?
2) If he is an inactive board member is he liable for any mis-dealings, representations by the company?
One of my friend is holding 26% of shares of a pvt ltd company registered as nbfc under rbi guidelines.
1) is it mandatory for him to become a director?
2) If he is an inactive board member is he liable for any mis-dealings, representations by the company?
Ankur Garg
(Expert)
26 October 2009
No. It is not mandatory for him to become a director.
But if he chooses to be a director then he is prima facie liable for all the activity and representations made by the company.
Regards
But if he chooses to be a director then he is prima facie liable for all the activity and representations made by the company.
Regards
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