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Shared liabilities of directors in company closure expenses

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Hitesh Jain

25 Points Posted on 13 February 2021

Hi Team,

I am director in a pvt ltd company along with 1 more person and we have shareholding in the ratio of 3:2 . Can you please tell me as per rule, how should the expenses if any in the closure of the company should be shared.

thanks.

Replies (4)

Quick Summary

This discussion explores how expenses incurred during the closure of a private limited company should be shared between directors. While directors are not legally obligated to personally bear these costs, any agreement on sharing them, especially when the company lacks funds, should be mutually agreed upon. Shareholding ratios do not dictate a director's liability for closure expenses.

pritesh

delhi

464 Points Posted on 14 February 2021

A director need not to bear any expense . although you are a shareholder too than expenses should be distributed in mutually agreed. there is no law or procedure to share the expense in ratio.

Hitesh Jain

25 Points Posted on 18 February 2021

Thanks @ pritesh . Company does not have money to bear expenses. So I think directors will invest money in the company for this purpose.

What if 1 director has shareholding of ~51% and other has shareholding of ~32% , so in this case as one of of the director has more than half shareholding, is he not liable more to bear expenses ?

pritesh

delhi

464 Points Posted on 18 February 2021

No there is no concept of bearing expenses in any case . if possible can you give the company name.

Hitesh Jain

25 Points Posted on 18 February 2021

Thanks a lot Pritesh. Do u mean to say there is no concept of bearing more expenses by director having more share holding? I will let u kno the company name in personal chat.