21 February 2008
Myself became a director of a private Ltd. Co. and it is trading concern. This co. is of my relatives and I am not involved in this company neither I invest anything nor I withdraw any amount. Later days can any liability put on me on behalf of company? Am I responsible to pay any liability of company?
21 February 2008
You are not investing anything & not withdrawing anything but working as an MD. Eventhough you are a related party. Keep all legal docs.No liability will put on you.
you are working in the position of MD eventhough you are a related party .
21 February 2008
For any acts of negligence by the company a director may be issued a show cause notice/warrant. The onus of proving the at he was not a party to such an act is squarely on the director.
CAclubindia
