Hi experts I am here to ask one simple question. What happens if a company fails to pay the loan amount to bank?
For eg There are 4 Directors from different families and they took a loan from Bank for Industrial purpose amounting 5crores. They are unable to pay it because of closure of factory working due to short supply of raw material, poor management and other factors. Nothing was willfully done for defaulting loan. So what is the liability of directors in this case.
Can bank or law in this case act against directors?
CAclubindia
