Company
Legal Eagle
(Querist) 21 April 2009
This query is : Resolved
Hi. I want to know as to whether a Director of a Company (Pvt & ltd) have the power to file a legal suit in the event there is difficulty in obtaining the board of resolution. If so then under which section of the Companies Act and if not then under which section of the Companies Act.
If a director files a suit without a resolution being passed what are the consequences.
ESTHERPRIYA
(Expert) 21 April 2009
Kindly note that Board resolution passed on behalf of the company by all the board of directors shows that you are making a claim in the legal proceedings on behalf of the company. Thus in case if you need to file it in individually then you can file against the company under section 397 and 398. Without board resolution, if you file then it is done on your personal capacity i.e. as a director and not of the capacity of the company.
Legal Eagle
(Querist) 22 April 2009
Thank you Padmapriya. But could you please tell me if a director files a suit in his personal capacity as a director and pleads for the company and still a decree is passed against him, in that event, is his personal belongings attached or the company assets are attached. Please revert, its early. As a suit has to be filed awaiting for an early reply.