Liability of Director in case of Company

This query is : Resolved

Rohit Mishra (Querist)
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04 July 2008 Mr. A is a director of XYZ company. now the company has not sufficient fund to meet all its liabilities so the creditors sued against director to give their personal assets to overcome the liabilities of the company.

Is it possible in any how ?
If yes then please specify case or no then also please specify case ?

Should we consider it under sec. 179 of the Income tax Act or not ?

S.Srinivasaraghavan

S.Srinivasaraghavan (Expert)
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04 July 2008 Section 179 comes into picture only if the company is liquidation That too only for taxation. Even then if the director shows that he was not negligent he can not be made personally liable. Nprmal creditors can not sue a director for recovery of dues by the company, unless he has given personal guarantee in respect of such dues.

Rohit Mishra

Rohit Mishra (Querist)
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04 July 2008 but i want a cse i this regards