Personal liability of the directors

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Sowmya.S.Balan

Paid Assistant

283 Points Posted on 05 July 2013

Dears,

One private limited company accepts loan from a co operative society without executing any collateral security. Now the company defaults in payment of principal and interest . what is the remedy available against the company ? can it be recover from the personal assets of the directors ?
One private limited company taken on lease one property for the company. After executing the lease agreement the existing two directors changed and new two directors appointed. They misutilise the leased property. What is the remedy available against the company ? whether the direct ors are personally liable?

Please help me its very urgent

Replies (2)

umaa's legal clinic

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164 Points Posted on 05 July 2013

Dear sowmya,

1. the cooperative society may approach the civil court with documentary evidence for recovery of money.

2. as it is not clear of the word "misutilise" i can say that the owner may follow the clauses mentioned in the lease deed. Otherwise he may also demand for cancellation of the deed and make the company vacate the property.