aishwarya vucha 04 May 2019
G.L.N. Prasad (Retired employee.) 05 May 2019
It depends on the documents executed as a security for such advances/loans received. without individual guarantee of directors, banks generally do not entertain advances to the company. The advantages in company type of business are that the liabilities are limited to the extent of shareholdings only. In case of cheque bouncing cases, directors in individual capacity also have liability..Please contact Auditor of the company to learn facts of such liability.
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