One of my client is a non-controlling director in a company where he does not have access to the bank accounts and other compliance matters. Out of trust he/she had allowed the other director to keep access to bank accounts and other compliance matters. Now it has become evident that the other directory was unscrupulous and has made a mess of the accounts including compliance issues like non-payment of Taxes etc. What legal options does my client have to take enough steps that he is subjected to minimum liabilities of the other directors misadventures?
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Legal options available for a director / stakeholder to clear compliance liabilities
Replies (4)
He needs to prove that he did not take part in day to day business.
So where does he start? Since, there haven't been any compliance scrutiny expressing his concerns of the other director performing fraud, does he have options to request scrutiny or does he file a lawsuit against the other director?
First of all he should write a letter to the Board of Directors stating his concern that as per his view compliances required to be complied with are not complied with and requesting to the Board to take his letter in the next Board meeting Agenda and reply.
After receipt of reply from the Board what next steps should taken can be considered.He should write letter to the Board as stated above by Rigistred post or by any other mode in which acknowledgnemt of the Comapny can be received.
Agreed with view of Mr. Malay M. Pota.
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