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Company director liabilities

VENKANNABABU.DAVELI (ACCOUNTS EXECUTIVE) (3 Points)

05 December 2019

What is liability of members and
directors in pvt.ltd. Co. In case of non payment of bank loan and unsecured taken by pvt. Ltd. company is legal ly active but
continues change in board of directors who is responsible for the liability

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Chirag (Professional) (1979 Points)
Replied 09 December 2019

First and foremost liability is of company itself to repay the loan ,If company fails ,then creditor can invoke legal resort against the corporate debtor , liability of director only when ,it found that they do any kind of frauds or misappropriate loan money for their personal gain or they had provided personal guarantee to secure the loan taken by company or security ,else they are not directly liable for it ,generally in Pvt cos ,directors also a shareholder and he may also be promoter of company ,in this case if company winds up ,they are responsible as contributory for Co LTD by shares for any money including shares capital not paid up by them....Also note that any fraud happen during tenureship of existing director then even after resignation he'll be personally liable for it .