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.
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- Tax on Deemed Capital Gain
- Exiting partner in partnership firm in gst portal
- Type of Capital Gain
- ASMT-10 received from A O
- Can a single LLP in India legally operate multiple unrelated businesses (Travel, Cloud Kitchen, Ecom
- IT returns for fresh job holders
- ITR-Capital Gain
- Reporting in TDS return
- Traces submitting correction statement error
- Applicability of Books of Account for Commission Income (Sections 194D & 194H)
- CASH GIFT FROM BLOOD RELATIVE
- Account freezed for Ineligible ITC Scrutiny for GST Annual Return
- Rent claimed on building given on permissive possession basis
- TDS on property - Form 141 query
- Seeking Advice: High Tax Shortfall on Job Switch + Let-Out House Property Loss in FY 2025-26
- Housing Society-ITR5
- TDS on Rent received on redevelopment of building
- Indian IT Portal issue in computing tax as per UK-India DTAA
- Capital Gains on sale of residential flat
- Upload Level ValidationITR3Category of Defect B/D
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
