Liability of Directors - while the co. becoming defunc
This query is : Open
01 December 2009
dear members
kindly clarify me on the following:
A private ltd company need to be declared as defunct. But where the directors(promoters) were not ready to indmenify or submit affidavit as they were on the stand that no where in the Cos. Act the directors are personally liable to crs. except when the members are reduced below the min. no. or when the directors have acted to defraud crs. They argue that the co. being an artificial person having its own legal personality is liable and not the directors as they have not given any personal guarantee.
Under which provisions of the Cos. Act, the directors cand be made liable?
How to apply for striking off the name of the co. from ROC register in the above case?
(The promoter directors were on the stand that when ROC on its own raises notice u/s 560 let the co be striken off. They have not filed AR and Balance sheet for the past 5 years.)
regards
RAJA RAJESWARI S
kindly clarify me on the following:
A private ltd company need to be declared as defunct. But where the directors(promoters) were not ready to indmenify or submit affidavit as they were on the stand that no where in the Cos. Act the directors are personally liable to crs. except when the members are reduced below the min. no. or when the directors have acted to defraud crs. They argue that the co. being an artificial person having its own legal personality is liable and not the directors as they have not given any personal guarantee.
Under which provisions of the Cos. Act, the directors cand be made liable?
How to apply for striking off the name of the co. from ROC register in the above case?
(The promoter directors were on the stand that when ROC on its own raises notice u/s 560 let the co be striken off. They have not filed AR and Balance sheet for the past 5 years.)
regards
RAJA RAJESWARI S
08 December 2009
Cannot move 560 petition if the petition do not accompany affidavit and idemnity bond among others. Before moving action as per section 560(2), the ROC may issue show cause notice followed by prosecution proceedings against the Directors for the default of statutory filing. Perhaps the directors may not have thought of this consequence and if pointed out may come down with a different stand.
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