About 6 of us formed a 100% EOU company with the intention to manufacture and export a food product.
Unfortunately due to Covid and other factors we are not doing well. We took a loan of 8 Cr from a nationalized bank.
We have to pay outstanding dues by the end of this month otherwise the bank said they would declare our company as NPA.
Of the 6, 3 are directors of the company while the other 3 (one of them is an NRI) are passive partners. All of us have contributed capital and some have pledged properties.
If the bank declares NPA, would only the 3 directors or everyone be responsible for the liabilities?
CAclubindia
