the members of a private limited company consist of 'A' and 'B' who are also its directors.
On 4th August 2015, 'A' left India for a foreign business tour and on 28th August 2015 he died abroad.
On 1st September 2015, 'B' purchased on credit Rs.10000 worth of goods from 'C' on behalf of company.
'C' now proposes to make 'B' personally liable for the payment of the debt. Is 'B' liable?
please state your answer with relevant sections and provision.
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remember board of directors must be present
I mean min directors must constitute board like death retirement cases
I mean min directors must constitute board like death retirement cases
As per section 3A,
If at any time the number of members of a company is reduced, in the case of a public company, below seven, in the case of a private company, below two, and the company carries on business for more than six months while the number of members is so reduced, every person who is a member of the company during the time that it so carries on business after those six months and is cognisant of the fact that it is carrying on business with less than seven members or two members, as the case may be, shall be severally liable for the payment of the whole debts of the company contracted during that time, and may be severally sued therefor.]
If at any time the number of members of a company is reduced, in the case of a public company, below seven, in the case of a private company, below two, and the company carries on business for more than six months while the number of members is so reduced, every person who is a member of the company during the time that it so carries on business after those six months and is cognisant of the fact that it is carrying on business with less than seven members or two members, as the case may be, shall be severally liable for the payment of the whole debts of the company contracted during that time, and may be severally sued therefor.]
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