Lifting of corporate veil

Querist : Anonymous (Querist) 30 January 2025 This query is : Resolved
If a deceased director takes loan from bank for company against his property as mortgaged and then misappropriates loan amount to his personal use and transfer some amount to his personal account. Does his legal heirs responsible to repay it and he will be personally liable to pay it or it would be done without lifting of corporate veil.

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Quick Summary

This discussion examines the liability of legal heirs when a deceased director misappropriates company loan funds for personal use. It clarifies that legal heirs are responsible for repaying the loan to the extent of the estate they inherit from the deceased. The outstanding loan amount is recoverable from the deceased borrower's estate.

T. Kalaiselvan, Advocate (Expert) 30 January 2025
The legal heirs will be responsible to the extent of availing his estates and they would be liable to repay the loan to the extent of inheritance

kavksatyanarayana (Expert) 30 January 2025
Yes. The legal heirs of the deceased director are responsible for repaying the loan.

Dr. J C Vashista (Expert) 31 January 2025
The outstanding amount shall be recoverable from estate of deceased borrower.

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