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Extent of liability in pvt ltd company

Agreement deeds 723 views 1 replies

ninad

partner

24 Points Joined September 2013

Hello,

I want to know the extent of liability a director is liable under a Pvt ltd company ?

Is it limited to the assets owned by the ovt ltd company only ? Or does the personal wealth of the director also get attached incase of a default of a bank loan etc.

Pls guide

Replies (1)

If the business should fail for any reason the shareholders/members/directors are only liable for the amount of money that they have invested. In other words they could lose that investment. This rule only applies provided that no personal guarantees have been given and provided no illegal dealings have taken place.