What documents to be check of pvt ltd co to join new drecto

If you have trust in the company / management join straight away. If you suspect any unaccounted or contingent liabilities and still wish join as a director, you may appoint a financial due diligence auditor. However, this may not be possible as the offer of the directorship at their behest.

Alternatively, you may enter into an MOA wherein along with other terms you may add an indemnity clause indemnifying for the transactions occurred till the date you join as a director.

Dear Makrand,

Only "officer who is in default" shall be liable to punishment or penalty for the acts done by him as per the provisions of Section 5 of the Companies Act, 1956.   They are

a. managing director,

b. whole time director

c. manager,

d. secretary

or any person(including any other director) who are charged with such responsibilities and such person has given consent to such responsibility so charged to him.

IMPORTANT

Section 201 of the companies act, 1956 provides that any provisions, whether contained in the articles of association of the company or in an agreement for exempting any director from or indemnifying him against any liabiity which by virtue of any rule of law would otherwise attach to him in respect of any negligece, breach of duty o breach of trust of which he may be guilty in relation to the company, shall be void.  

However if in any proceeding a court passes judgement in favour of such director he may be indemnified by the company from such other costs incurred.