Resigned director's obligation

N.J. MISHRA (Querist) 01 June 2015 This query is : Resolved
An MD of a firm takes 3Cr Loan from a bank for his company and signs the documents from the bank 'on behalf of xyz Pvt.Ld Company. He resigns after 2 months on the loan approval. so if case of any legal issues, what are the obligations on the resigned director?

members please guide me on aforesaid issue

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DEFENSE ADVOCATE.-firmaction@g (Expert) 01 June 2015
Company law matters are highly technical and there can not be easy and direct answer to such problems.

In normal course directors whether existing or retired for commercial liabilities are liable which was incurred during their tenure.

However there are certain provisions in company law depending or memorandum of association , articles and other related documents that even existing directors and can out of personal liabilities.

Guest (Expert) 01 June 2015
Academic query. Legal issue needs be specified for suitable solution.

Rajendra K Goyal (Expert) 02 June 2015
Language of the documents need to be referred. If there was any clause / document of personal guarantee / liability, he would be liable. Sometime the directors are asked to submit personal guarantee by Banks while providing loan to Company.

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