Directors liabilities under different acts - section wise

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Guest

Guest (Querist)

02 November 2012 Dear Experts,

What are the directors liability under different Acts. Section-wise details required under different acts.

Thanks

Ajay Mishra

Ajay Mishra (Expert)
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02 November 2012 Hi

give id i will send the same.

Guest

Guest (Querist)

02 November 2012 csrakeshmishra@zoho.com

Ajay Mishra

Ajay Mishra (Expert)
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02 November 2012 I think u got the same.

Guest

Guest (Querist)

02 November 2012 Ajay ji i already have the same file which u have send me sections are not given in this file, my specific requirement is for section wise.

Thanks

Aashok Kumar Sharma

Aashok Kumar Sharma (Expert)
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21 July 2024 Directors of companies have various responsibilities and liabilities under different Acts in India. Here’s a summary of key Acts and sections relevant to directors' liabilities:

### Companies Act, 2013:

1. **Section 166:** Duty to act in good faith and promote the objects of the company.
2. **Section 167:** Vacation of office of director.
3. **Section 168:** Resignation of director.
4. **Section 169:** Removal of director.
5. **Section 170:** Register of directors and key managerial personnel.
6. **Section 171:** Disclosure of interest by director.
7. **Section 172:** Meetings of Board.
8. **Section 173:** Meetings of Board's committees.
9. **Section 174:** Quorum for meetings of Board.
10. **Section 175:** Passing of resolutions by circulation.
11. **Section 177:** Audit Committee.
12. **Section 178:** Nomination and remuneration committee.
13. **Section 179:** Powers of Board.

### Income Tax Act, 1961:

1. **Section 149:** Definition of "company."
2. **Section 153:** Liability of director for tax due from company.

### Goods and Services Tax (GST) Act, 2017:

1. **Section 122:** Penalty for certain offences.
2. **Section 123:** General penalties.
3. **Section 124:** Fine for failure to furnish information return.
4. **Section 125:** General penalty.

### Employees' Provident Funds and Miscellaneous Provisions Act, 1952:

1. **Section 14:** Directors and officers of companies to be liable for offences committed by company.
2. **Section 14A:** Power to recover damages.
3. **Section 14B:** Liability in case of continuing default.

### Environmental Laws (Environmental Protection Act, 1986; Water (Prevention and Control of Pollution) Act, 1974; Air (Prevention and Control of Pollution) Act, 1981):

1. **Section 15:** Penalty for contravention of certain provisions of the Act.
2. **Section 17:** Power of Central Government to give directions.

### Labour Laws (Factories Act, 1948; Employees' State Insurance Act, 1948; Payment of Bonus Act, 1965; Payment of Gratuity Act, 1972):

1. **Various sections:** Directors may be held liable for non-compliance with provisions related to safety, health, welfare, etc.

### Securities Laws (SEBI Act, 1992; Companies Act, 2013; Securities Contracts (Regulation) Act, 1956):

1. **Section 15HB of SEBI Act:** Penalties for failure to furnish information, returns, etc.
2. **Section 21A of SEBI Act:** Penalty for contravention where no separate penalty has been provided.
3. **Section 16 of Companies Act, 2013:** Prevention of oppression and mismanagement.

### Banking Laws (Banking Regulation Act, 1949):

1. **Section 46:** Restriction on powers of banking companies to remit debts due to them.

### Competition Law (Competition Act, 2002):

1. **Section 48:** Penalties.

### Insolvency and Bankruptcy Code, 2016:

1. **Section 66:** Fraudulent trading.
2. **Section 67:** Wrongful trading.
3. **Section 68:** Preferential transactions.

### Consumer Protection Act, 2019:

1. **Section 21:** Penalty for non-compliance with orders.

### Note:
- Directors' liabilities can vary based on the nature of the company, its activities, and the specific provisions of these Acts.
- These sections provide a general overview and may not cover all specific liabilities applicable in every scenario.
- It's advisable for directors to seek legal advice to understand their specific liabilities and responsibilities under each Act relevant to their company.

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